According to Michael Novogratz, CEO of the investment company Galaxy Digital, the current fall in the cryptocurrency market is due to the stupidity of a large part of the industry.
In an interview with Bloomberg, Michael Novogratz said that the wrong steps of the founders of the Terra ecosystem and the bankruptcy of companies like Celsius, Voyager and Three Arrows Capital made the entire cryptocurrency industry look like a “bunch of jerks”.
He stressed that the collapse of the Terra ecosystem was “very predictable”, so companies that lost money in them do not have very far-sighted leadership. In addition, funds investing in cryptocurrencies got too carried away with margin trading, which led to numerous bankruptcies.
Ironically, Galaxy Digital has also invested in the Terra ecosystem. Novogratz himself even got a tattoo based on the Luna cryptocurrency and called himself a “lunatic.” However, it seems that the CEO of Galaxy Digital still managed to predict the collapse of the ecosystem and sold the assets in time.
“People usually understand where they are investing if they pay attention to it. Bet on Terra did not work and the ecosystem collapsed quickly. But here the lesson is simple – industry participants and retail investors have a very poor understanding of risk management. The companies that went bankrupt during the market downturn were simply too greedy,” Novogratz said.
Earlier, the CEO of Galaxy Digital said that he did not believe in the fall of the price of bitcoin to $13,000.
Source: Bits
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