Billionaire Novogratz Is At Loss Due To LUNA’s Freefall

• Galaxy Investment Partners suffered a 12% decline at the beginning of Q2.
• Mike Novogratz called Bitcoin a “macro-bet”.

Billionaire Mike Novogratz, one of the prime movers of LUNA, is now pulled into the coin’s wild crash picture. Galaxy Digitals CEO’s affinity towards the sinking coin caused panic among investors and eventually led to the decline of the company shares by 35% in the last week. 

Recently, in January, Novogratz proved him as a “LUNAtic”, a supporter of the LUNA coin, by revealing his new tattoo on Twitter. At the bitcoin conference 2022 in Miami, he called himself the only man who possesses a Bitcoin and LUNA tattoo. His silence on Twitter during this critical phase is under criticism from many crypto enthusiats.

The former Goldman Sachs banker has been an active campaigner of Bitcoin ever since the inflation during 2012-2013. Galaxy initiated an investment of 25 million USD in the LUNA project of Terraform Labs (TFL) in February 2021. 

Parallel Declines

On Friday, the company reported its $1.6 billion liquidity position, split evenly between cash and digital assets. So far in Q2, till Wednesday, the firm’s capital declined 12% to $2.2 billion from that of Q1 2022. Moreover, its net income is at a loss of $300 million USD. 

In this quarterly report, the company clearly stated that it doesn’t hold any algorithmic stablecoins in its treasury. 50% of its liquidity position is contributed mostly by non-algorithmic stablecoins.

While huge investors of LUNA face significant losses, Do Kwon, founder of TFL, continues to come up with numerous recovery plans from Terra’s “war-room”. He recently announced the “Agora”, a  collection of several proposals to revive the network stability. In the recent proposal, the validators are asked to reset the network to 1 billion tokens. The first 400 million tokens will be distributed to LUNA holders, another 400 million to UST holders, and 200 million to the pool as funding for future projects.

At the time of writing, according to CMC, LUNA traded at $0.000267 USD and is trading up 607.84%. The stablecoin TerraUSD (UST) is trading at a price of $0.215USD.