Galaxy Digital CEO Mike Novogratz shared that the heart doctor lost $1 million from altcoin investments. The famous crypto billionaire criticizes regulators for failing to provide clearer regulations.
Mike Novogratz, this altcoin of his doctor
After the massive drop in cryptocurrency prices last month, many investors lost millions of dollars. Mike Novogratz, in an interview with Bloomberg’s Sonali Başak today, says the cardiologist is losing big in these conditions.
Billionaire investor @novogratz says that his heart doctor lost $1 million in crypto when discussing disclosures among handling retail deposits with @sonalibasak #BloombergCrypto https://t.co/awL0TUcc29 pic.twitter.com/0roDy5yY0b
— Bloomberg Crypto (@crypto) July 19, 2022
According to Novogratz, his doctor lost $1 on cryptocurrency investments. However, he did not share information about which cryptocurrencies the healthcare professional invested in. The loss is thought to be the Terra ecosystem, as Novogratz is known to be a LUNA fan. The billionaire also says that individual investors are not adequately protected.
Mike Novogratz highlights lack of regulator
Meanwhile, Novogratz also took the time to criticize financial regulators for their lack of dedication to the emerging sector. Recently, US regulators have been criticized for not providing clearer regulations for the cryptocurrency market. Crypto advocates believe clearer regulations will help the market develop better. Despite the lack of regulatory clarity for the US crypto setter, Novogratz noted that people will still flock to cryptos as “the human gambling instinct will not go away.”
Novogratz continued:
I don’t know what the SEC should have done, done or might have done. But they haven’t done much to protect individual investors.
Regardless of the massive drop in cryptocurrency prices, Novogratz is confident that the market will rise again. Meanwhile, Novogratz is a well-known cryptocurrency supporter. It gives its weight to various cryptocurrencies including Bitcoin (BTC) and Terra (LUNA). Galaxy Digital CEO recently pledged his support to Terra by drawing a LUNA tattoo on his right arm. Meanwhile, most altcoins that the famous billionaire has invested to date have declared bankruptcy in the recent crash.
Billionaire-backed LUNA ‘disappeared’
In the early hours of May 16, things turned around for Terra LUNA and UST. The LUNA price crashed from $80 to $1 in a short time. LUNA thus overshadowed the collapse of BitConnect and the market crash of March 2020. The disaster caused by the failure of Terra’s algorithmic stablecoin UST triggered a “death spiral” in the stablecoin market. Rescue efforts tried after that also failed.
Delphi Digital, whose investment arm lost $10 million, has this to say about this collapse:
To the vocal critics of Terra’s algorithmic design – you were right and we were wrong. We understood the risks of the algorithmic model from the beginning and tried to be transparent about them throughout. But it is clear that we miscalculated the risks.
