Mike Novogratz opines that the recent collapse of the Terra ecosystem is an awakening call to be careful with risk management.
The Terra ecosystem’s collapse has sent shockwaves through the cryptocurrency market. Some of Terra’s largest investors, including Delphi Digital and Galaxy Digital’s Mike Novogratz, have finally spoken out on the matter.
Delphi Digital took part in the last Luna Foundation Guard (LFG) fundraiser in February 2022. The investor has lost a whopping $10 million of its total investment. Delphi Digital has released a detailed report on what it did with its LUNA reserves during the crash. Recognizing its error in holding on to its investments, it wrote:
Mike Novogratz, the crypto billionaire, finally broke his silence on the entire LUNA episode on Wednesday, May 18. Novogratz stated that he remained silent during the crash to reflect on the economy and his role in the crypto space.
The Terra incident will have a significant impact on investor confidence in the crypto and DeFi markets. During the fourth quarter of 2020, his company, Galaxy Digital, invested in Terraform Labs. Since then, he has been actively promoting the UST stablecoin on social media.
Earlier this year, Novogratz got a Terra LUNA tattoo on his hand. “My tattoo will serve as a constant reminder that venture capital investing necessitates humility,” he wrote.
Novogratz also stated that individual investors who invest in cryptocurrency should be mindful of risk management. Novogratz also stated that investors’ crypto allocation should be limited to 1% to 5% of their total assets. He stated: