“Greed, ignorance and stupid risk management” has caused the cryptocurrency market to crash. This was stated in an interview with Bloomberg by Mike Novogratz, head of Galaxy Digital.

The senior executive said 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”. He added that the first episode “started a chain of events”, as trivial as it may seem.

Galaxy Digital has also invested in Terra. At the beginning of the year, Novogratz called himself “LUNAtic”, which he later regretted. He admitted that the tattoo at the time would be a constant reminder that venture investment requires humility.

“Lesson learned [из недавних событий] The industry with many retail investors has a very limited understanding of risk management.” explained.

Novogratz noted that unsuccessful firms go too far because of greed and ignorance.

“Three Arrows Capital started the wheel of a complete credit crunch. We have damaged trust […] and scared retail investors”, acknowledged the CEO of Galaxy Digital.

Novogratz previously described Terra USD as a “big idea that failed.”

Recall that the debt of Three Arrows Capital is $ 3.5 billion.

Prior to that, Celsius Network reported a “hole” in the balance of $1.2 billion.

Voyager Digital’s estimated liabilities can range from $1 billion to $10 billion.

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