This kind Pink Elephante welcomed Gilly to his camp when she was lost and told her the legend of Neovia. He is the first new character we see in the Tale of Woe plot. After the plot, he disappeared from the camp, and the other gypsies have never heard of him.
But it did indeed come with a terrible price.
It seems likely that the Gypsy was in fact Mr. Krawley in disguise.