Mike Novogratz, founder of Galaxy Digital Holdings, billionaire, and crypto bull, says he got it wrong about the crypto industry as several firms have collapsed and digital asset valuations have tanked.
Novogratz was also a big supporter of TerraUSD/LUNA – the failed algorithmic stablecoin concoction. In fact, he sported (or still has) a huge tattoo displaying his belief in the now collapsed crypto.
How's that Luna Tattoo coming along Mike? 🤣😂🤣
To The Moon. pic.twitter.com/ggBUzBnUoM
— Alby (@albyva) July 7, 2022
During the Bloomberg Crypto Summit, Novogratz said he did not appreciate the amount of leverage being used in the crypto ecosystem.
“What I don’t think people expected was the magnitude of losses that would show up in professional institutions’ balance sheets and that caused the daisy chain of events. It turned into a full-fledged credit crisis with complete liquidation and huge damage on confidence in the space,” said Novogratz. He compared the digital asset crash to the Lehman Brothers collapse that assured the Great Recession.
Crypto hubris was rampant prior to the demise of several digital asset firms and platforms that scrambled for bail outs as counter party risk and excessive leverage added fuel to the crypto rout. While traditional markets dropped in value, some crypto firms simply dropped dead.
Novogratz still pumps Bitcoin, believing it will reach $500,000 in the coming years. He also still appears on CNBC regularly and is welcomed at crypto conferences, sought for his opinion on crypto and markets in general. Being egregiously incorrect is no longer a barrier to being a public figure and prognosticator, I guess.