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.
Мајк Новограц је био један од највећих обожаватеља валуте. У прошлости је изјавио да је у року од пет година замислио да ће валута достићи цену од 500,000 долара, иако би то било помало чудно с обзиром да је валута била стабилан новчић. Са таквим статусом, средство је требало да остане само на 1 долар током свог мандата.
Ипак, Новограц је полагао велике наде у новчић, па је чак и додао валуту у биланс стања своје компаније пре отприлике две године. Био је сигуран у имовину и уложио је у њу с обзиром на велико обећање које је наводно давало захваљујући апликацији Цхаи, која је изграђена на Терри у Јужној Кореји. Поред тога, руководиоци новчића представили су планове да екосистем валуте претворе у пуну мрежу плаћања.
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
Он каже:
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/