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Are Defi Crypto Lenders All Running Ponzi Schemes! It's A Full Blown Credit Crisis In Crypto Lending
Novogratz said that crypto is in the midst of a “full-fledged credit crisis”
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Mike Novogratz, crypto billionaire was warning of the risks of crypto leverage, admitting this week to Bloomberg that he was "darn wrong" about the "magnitude of leverage" in the crypto universe.
Novogratz said that crypto is in the midst of a “full-fledged credit crisis” at the Bloomberg Crypto Summit Tuesday. He commented: “What I don’t think people expected was the magnitude of losses that would show up in professional institutions’ balance sheets and that caused the daisy chain of events.”
“It turned into a full fledged credit crisis with complete liquidation and huge damage on confidence in the space," Novogratz continued.
After throwing his support behind Terraform Labs, which subsequently collapsed, Novogratz told Bloomberg that he learned that both the industry and retail investors “really had very, very little concept of risk management.”
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