Mike Novogratz has rushed with critics on participants in the cryptocurrency industry
The fall of the crypto market was provoked by “greed, ignorance and foolish risk management.” The opinion was expressed by Galaxy Digital CEO Mike Novogratz.
According to a well-known trader, the collapse of the Terra ecosystem, as well as the filing for bankruptcy by Celsius Network, Voyager Digital and Three Arrows Capital, made all digital asset market makers look like “a bunch of idiots.” The situation with Terra “launched a chain of events,” no matter how trite it may sound, Novogratz emphasized.
Galaxy Digital was one of the investors of Terraform Labs, supposing to develop the Terra ecosystem. However, Novogratz then sentenced notorious Terra USD “a big idea that failed.”
“The learned lesson is that the whole industry and a lot of retail investors had a very limited understanding of risk management. And the projects which have failed are responsible because of their greed and ignorance,” Novogratz believes.
“Three Arrows Capital has launched the falling into a full credit crunch. In total, we’ve received huge damage to confidence […] and scared retail investors,” said the head of Galaxy Digital.
According to a July report by Grayscale Investments, the current bearish trend could continue for another four months. The data is based on a comparison of the current market situation with the early periods in the history of digital currencies.
Some analysts believe the industry should prepare for five or even six months of downward or sideways movement in the price of crypto assets. At the same time, experts point out that each new period in the history of digital currencies is about a month shorter than the last one.
Grayscale believes that there are about four months left before the sale price rises above market value, marking the start of a bull cycle. Compared with recent information from Bloomberg strategist Mike McGlone who also stated that the main crypto coin will start to grow within the next six months, it seems Interesting.
