Billionaire lost money because Luna used a tattoo to 'remind herself'

 Billionaire Michael Novogratz says he will always look at the Luna tattoo to remind himself of venture capital, after the cryptocurrency collapses.

"After much thought, it's time to talk about what happened last week and, more importantly, the coming weeks," Novogratz wrote on Twitter yesterday and attached a "letter" to shareholders and friends. and cryptocurrency community.

This is the first time he has spoken out about Luna after a week of "silence" when the token and stablecoin UST collapsed.

Billionaire Michael Novogratz and Luna tattoo. Photo: Bloomberg
Billionaire Michael Novogratz and Luna tattoo. Photo: Bloomberg

Novogratz is the CEO of Galaxy Digital, the investment fund that has poured $25 million into Terraform Labs - the company behind the Luna and UST tokens. In the letter, he mentioned his decision to support Luna and UST by the end of 2020 because he recognized "significant growth potential" then.

In fact, Galaxy Digital's investment brought in more than $355 million in the first quarter of 2022, the most of the company's $1 billion in cryptocurrency profits. However, when Luna and UST plunged, all the money evaporated quickly.

Novogratz blamed Luna's demise on a "global macro backdrop," including government control of cryptocurrencies, as well as political tensions. However, he affirmed that the company was not affected much by the diversified business fields.

Talking about the Luna tattoo, he considers it a lesson for himself. "With hindsight, everything is clear in front of me. The Luna tattoo will be a constant reminder to me that venture capital needs to be slow," Novogratz wrote.

Previously, Novogratz tattooed on his arm a wolf, a moon with the word "Luna" in support of this digital currency. "I will howl to the moon to thank Luna for giving me something to pay my bills," Novogratz posted on Twitter in November 2021.

Novogratz is one of the reasons why users are interested in Luna and UST due to being an influencer in the cryptocurrency market. He also frequently mentions two of Terra's tokens. Therefore, when Luna lost almost 100% of its value, Novogratz became the most noticeable figure after Terraform Labs founder and CEO Do Kwon.

The Silence of the 'CryptoKOLs'

After the collapse of Luna and UST, almost all cryptocurrency ads disappeared. According to the New York Times, influencers (KOLs) also remained silent or declined to comment when asked.

Previously, many celebrities actively promoted cryptocurrencies on television and social networks, such as basketball stars Joel Embiid and LeBron James, actors Matt Damon, Larry David, Reese Witherspoon and Gwyneth Paltrow or female singer Paris Hilton.

The Super Bowl, one of the world's most-watched events, was even called the "Crypto Bowl" for broadcasting a lot of cryptocurrency ads earlier this year.

However, after May 12, when Luna and UST plunged, almost no one spoke up.

"It's real money that people invest, but the ads don't mention the potential risks," University of Chicago professor Giovanni Compiani told the New York Times. "They should be partly responsible when investors lose money."

Some other experts argue that crypto advocates have directly damaged their reputations. "If I were Matt Damon or Reese Witherspoon, I would question the legality, risk, and more before signing an advertising contract," said Beth Egan, associate professor of advertising at the University of California. Syracuse University, said.

In the US, many large businesses are willing to spend money on promoting cryptocurrencies. According to statistics from analytics platform Path Path, Crypto.com spent an average of 109,000 USD per day on this in March, but that number dropped to 24,669 USD in May. Meanwhile, FTX exchange also spent. over $14,700 per day in May to promote cryptocurrencies, before stopping due to the Luna incident.

The Terraform Labs team is still working to resolve the crisis. Recently, CEO Do Kwon proposed creating a new Luna token that is not related to the current Luna, but faced backlash from users.

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