Mike Novogratz – CEO of Galaxy Digital and a billionaire bitcoin investor – was so confident in Terra USD, the stable currency that lost its peg and crashed a couple of weeks ago, that he got the symbol for the asset tattooed on his arm. This is an action he claims to be regretting at the time of writing.
Mike Novogratz Is Wishing He Could Turn Back Time
Terra USD was an algorithmic stable coin. This means that it wasn’t backed up by any sort of physical collateral. Rather, the currency was only backed by a smart contract and the respective belief in the code. This belief ultimately wasn’t strong enough to keep the currency active and stable, as during the crypto bloodbath traders witnessed in mid-May, the asset lost its stable peg and fell practically to zero in just a few days. The currency is now considered virtually worthless and is one of the biggest digital currency fiascos to ever strike the industry.
De Mike Novogratz war ee vun de gréisste Fans vun der Währung. An der Vergaangenheet huet hien uginn datt bannent fënnef Joer hien d'Währung virgesinn huet e Präis vun 500,000 Dollar ze schloen, obwuel dëst e bësse komesch gewiescht wier, well d'Währung eng stabil Mënz war. Mat esou engem Status, sollt de Verméigen nëmme bei $1 während senger Amtszäit bleiwen.
Trotzdem hat den Novogratz grouss Hoffnungen op d'Mënz, an huet d'Währung souguer viru ronn zwee Joer op de Bilan vu senger Firma bäigefüügt. Hie war zouversiichtlech an de Verméigen an investéiert an et mat dem héije Verspriechen, deen et gemellt huet dank der Chai App ze weisen, déi op Terra a Südkorea gebaut gouf. Zousätzlech hunn d'Exekutive vun der Mënz Pläng enthüllt fir den Ökosystem vun der Währung e komplette Bezuelnetz ze maachen.
In an interview, Novogratz stated:
Among other things, we analyze developer engagement, investor support, and network activity. Terra, the underlying blockchain, had hundreds of projects being built on it and a world class list of investors. The initial idea was gaining serious traction.
The currency was tattooed onto his arm as a reminder that he was one of the first to promote the currency when it was still in its early stages. However, he continued in his interview that the tattoo is now just a reminder of his newfound humility and the subsequent crash that followed Terra’s de-pegging.
A Full Crash for the Space
Hie seet:
The downward pressure on reserve assets coupled with UST withdrawals triggered a stress scenario akin to a ‘run on the bank.’ The reserves weren’t enough to prevent UST’s collapse.
The dip behind Terra has caused several coins to fall in recent weeks, the most notable being bitcoin, easily the space’s largest and most popular asset by market cap. The currency – which was trading for about $68,000 per unit just seven months ago – has since dropped by about $40K.
Source: https://www.livebitcoinnews.com/mike-novogratz-is-regretting-his-terra-usd-tattoo/