Media: Hashed venture fund lost more than $3,5 billion in unrealized profits to Terra’s collapse

The company was one of the first investors in the project in 2021

19.05.2022 - 14:10

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2 min

What’s new? Venture fund Hashed, one of Terra’s investors, lost $3,5 billion in unrealized profits due to the collapse of the TerraUSD (UST) stablecoin and its backing token LUNA, CoinDesk reports. That company participated in Terra’s early 2021 venture round, which raised $25 million. Hashed staked $49,9 million in LUNA.

Information on the CoinDesk website

Who else lost funds to Terra’s collapse? Representatives of the research firm Delphi Digital wrote on their blog that they always had concerns about the structure of UST and LUNA, but believed that the significant assets held in the Luna Foundation Guard (LFG) would prevent the “unthinkable” from happening.

In the first quarter of 2021, Delphi Ventures Master Fund bought a small amount of LUNA shares worth 0,5% of its net asset value (NAV) at the time. That figure rose as LUNA appreciated and the fund increased its holdings, including a $10 million investment in LFG in February 2022, which is now worthless. Delphi said that it did not sell LUNA and now has “a large unrealized loss.”

What events happened before? On May 16, the head of the Binance cryptocurrency exchange Changpeng Zhao said the loss of more than $1,6 billion in unrealized profits from its investments in the LUNA token following its rate collapse. However, he urged the Terra team to focus on compensating retail investors and return the exchange’s funds last, if even possible. Ethereum co-founder Vitalik Buterin also voiced a recommendation to support smaller investors.

On May 12, the British blogger, KSI, said that he lost $2,8 million on the collapse of the LUNA rate. Then he noted that despite hyperinflation, he had no plans to sell the assets, the value of which fell to $1 000. KSI added that it would wait for the exchange rate to recover.

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