Mike Novogratz explains why the crypto market collapsed the cryptocurrency market’s collapse was caused by “greed, ignorance, and misguided risk management”. This was stated by the head of Galaxy Digital Mike Novogratz.
The top executive said that the collapse of the Terra ecosystem and the problems of Celsius Network, Voyager Digital and Three Arrows Capital made the entire industry look like “a bunch of idiots.” The first episode “set off a chain of events,” as trivial as that sounds, he added.
Galaxy Digital also invested in Terra. Earlier this year, Novogratz referred to himself as “LUNATIC,” something he later regretted. He acknowledged that the tattoo he got at the time would be a constant reminder that venture investing requires humility.
“The lesson learned is that the industry, a lot of retail investors had an extremely dim view of risk management,” he explained.
The collapsed firms overreached because of greed and ignorance, Novogratz noted.
“Three Arrows Capital started the flywheel of a full-blown credit crisis. We’ve suffered tremendous damage to credibility and scared off retail investors,” acknowledged the CEO of Galaxy Digital.
As a reminder, Mike Novogratz is confident that bitcoin will not fall below $20,000.