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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 significant part of the industry.
In an interview with Bloomberg, Michael Novogratz(Michael Novogratz) said that the missteps 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 assholes.”
He emphasized that the collapse of the Terra ecosystem was“highly predictable”, so companies that lost money in them do not have very far-sighted management. In addition, funds investing in cryptocurrencies became too carried away with margin trading, which led to numerous bankruptcies.
Ironic that Galaxy Digital tooinvested 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 off its assets in time.
“People usually understand where they are investing ifpay attention to this. The bet on Terra did not work out and the ecosystem collapsed quickly. But the lesson here is simple - industry participants and retail investors have a very poor understanding of risk management. The companies that went under during the market decline were simply too greedy,” Novogratz said.
Previously, the CEO of Galaxy Digital said that he does not believe that Bitcoin will fall to $13,000.
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