The collapse of Terra cost blockchain company Hashed $3.5 billion in losses, according to on-chain data. Against the background of the incident, the investment firm Delphi Digital could also lose up to 13% of its assets – this was the equivalent of the peak value of the purchased LUNA tokens.
Representatives of Delphi Digital admitted that they had concerns about the design of UST and LUNA, but believed in the ability to LFG with her reserve fund to prevent the “unthinkable”.
“We miscalculated the risk of a death spiral. Over the past week we have had to sweat a lot because of this, and we deserve it. Criticism is fair and we accept it”the firm wrote.
Delphi Ventures started by buying LUNA in Q1 2021 for 0.5% off NAV on that moment. The position increased as the asset grew. In February 2022, the firm invested $10 million in LFG. Now, having not managed to sell a single coin, Delphi Digital is forced to reflect a “large unrealized loss” in its financial statements.
“Unfortunately, the reserves [LFG] did not grow fast enough compared to the UST supply. Combined with the fall in the value of bitcoin, the liability overhang proved prohibitive to protect.”the company explained.
Hashed participated in the Terra investment round for $25 million in 2021.
According to on-chain data, the startup has consecutively locked 27M LUNA, 9.7M LUNA and 13.2M LUNA in staking. In total, these losses can be estimated at $3.5 billion, according to CoinDesk.
In an interview with the publication, company representatives announced financial stability and the absence of significant influence on Hashed Ventures.
In South Korea, where Terra was popular, there were 200,000 investors in the project, according to Yonhap’s calculations.
The local Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) have requested information from operators of cryptocurrency exchanges about transactions related to Terra USD and LUNA.
Recall that representatives of Pantera Capital announced the closure of 80% of the position in the tokens of the Terra ecosystem before the collapse of the project.
Earlier, Forbes called the collapse of the project the “fifth reboot” of the crypto market.
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