In April, Mike Novogratz, a former banker at Goldman Sachs, a prestigious investment bank, said (GS) – Goldman Sachs Group, Inc. Get a report I was in Miami for the summit in the realm of bitcoin-only crypto.
Novogratz was a star in this kind of festival to celebrate Bitcoin and cryptocurrency as a whole.
Festival attendees gladly posed for a photo with him and did not hesitate to post it on social media. The billionaire and CEO of Galaxy Digital is one of the most popular Bitcoin and cryptocurrency evangelists. In the crypto realm, he is part of a closed list of names that include billionaires Elon Musk, Michael Saylor, Mark Cuban, Kevin O’Leary, Bill Miller, Sam Bankman-Fried, Jack Dorsey, Brian Armstrong, and Changpeng ‘CZ’ Zhao. , brothers Tyler W Cameron WINklevoss, and investor Anthony Pompliano who can influence the market price with a single tweet.
Crypto galaxies observe what they say and do. They are a kind of trust. In Miami, Novogratz showed his love for Bitcoin and Luna, one of the tokens of the Terra ecosystem. At the time, cryptocurrency was the best game. On April 5th, Luna’s price reached an all-time high of $119.23.
“I’m probably the only person in the world who has both a Bitcoin tattoo and a Luna tattoo,” the former banker said at the last Bitcoin 2022 conference in Miami.
Novogratz and Luna’s love relationship began in January when a billionaire shocked the world by revealing Luna’s tattoo.
Novogratz tweeted on January 4th, “I’m officially a maniac!!! Thanks @stablekwon. And thanks to my friends at Smith Street Tattoos,” Novogratz posted a photo showing off his new tattoo. Of course, the former banker didn’t offer any financial advice, but his tattoos and tweets were indirect ways to support Luna, as if celebrities were showing off their new NFT.
To a Twitter user who suspected he had the tattoo, Novogratz posted a second photo showing his face.
said the user.
After 5 months of being a proof of love, Luna’s price plummeted. The cryptocurrency was down 99.5% to $0.0000914. coin gecko, at the time of writing. Its market value fell from $41 billion to $623 million. In other words, Luna investors lost almost everything.
This is also true for investors in UST, a sister token of Luna, with which the cryptocurrency operates. The UST has lost its peg to the dollar and is currently valued at $0.143576. The market value fell from $18.77 billion on May 9 to $1.613 billion.
Both coins witnessed a collapse over the weekend of an algorithmic system backed by the UST’s dollar peg instead of reserves made up of traditional assets like cash, reducing supply and vice versa.
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Their defeat caused further disruption in the cryptocurrency market, which is already on high alert due to fears of a recession. The foundation behind Luna had to use Bitcoin to buy UST to limit the damage, but it was too late as the panic had already spread throughout the market.
Novogratz’s fortune was reduced by $6 billion.
Novogratz, who appears very frequently on social media, hasn’t posted a message since May 8th. He has almost disappeared and his absence is widely mentioned on Twitter.
One Twitter user said on May 13, “There hasn’t been a single Novogratz tweet yet.” “Exposure to Ponzi is not good, but getting a Ponzi tattoo on your skin for the rest of your life is terribly bad.”
Another user asked “Has anyone checked out @novogratz?🌕🐺”.
Another user said, “Send him https://cleanslatelaser.com he may need”.
Galaxy Digital did not respond to Street’s inquiries regarding Novogratz.
However, the company tried to reassure the market by arguing that it had enough cash.
“The company maintains a strong capital and liquidity position and is well positioned for long-term growth,” said Galaxy Digital. said In a press release on May 13. “The company will continue to manage the pace of its investments, taking into account the macroeconomic context, as it has done throughout its history, and our experienced executives continue to believe that there are significant opportunities for Galaxy Digital as they navigate the current market conditions.”
The company added that “the company’s treasury does not use algorithmic stablecoins like UST.”
Galaxy Digital said it has approximately $1.6 billion in liquidity, including $800 million in cash and over $800 million in net digital assets, with most of its net digital assets in non-algorithmic stablecoins.
However, compared to March 31, it expects a loss of approximately $300 million for the quarter ending June 30.
This is not the case with Novogratz’s personal property if the company can afford it relatively. According to the billionaire, his fortune melted from $8.5 billion on paper to $2.5 billion. Bloomberg Billionaires Index.