Mike Novogratz, the founder of Galaxy Digital, has released an open letter. Referring to his week of reflection and past Terra events, the letter states that the mechanics of $UST were open and transparent, and an attempt was made to create an algorithmic stablecoin that could work in the digital world. While it was a great idea, it ultimately failed, mainly due to downward pressure on reserve assets combined with a run on $UST that triggered the crash. Galaxy Digital will also continue to strengthen its investment principles, maintain a diversified portfolio and retain a risk-based investment framework.
