Venture Capital ‘Hashed’ Lost Over $3 Billion Following Terra Crash ALTCOIN NEWS
The firm bought 30 million LUNA in Terra early on and ended up losing.
At its peak, the 30 million tokens bought by Hashed were valued around $3.6 billion.
Hashed had a $3 billion loss on the Terra investment, according to new information from Bloomberg. According to Simon Seojoon Kim, CEO of the venture capital business, the firm bought 30 million LUNA in Terra early on and ended up losing the majority of its money when the network went down.
LUNA peaked at $119 in April, weeks before Terra’s UST stablecoin lost its peg to the dollar, leading to a stunning crash that wiped approximately $40 billion of value in the space of a few days. At its peak, the 30 million tokens bought by Hashed were valued around $3.6 billion.
Severe Impact of Terra Catastrophe
According to Kim, “there’s no such thing as a portfolio that guarantees success, and [Hashed makes] investments with that in mind.” After Terra’s collapse, a number of the industry’s most prominent participants were hit hard, including Hashed and Three Arrows Capital, a crypto hedge fund founded by Su Zhu and Kyle Davies.
Creditors claim that Three Arrows, which is now insolvent, owes $2.8 billion to lenders including Voyager Digital, Celsius, and BlockFi after it defaulted on a series of uncollateralized, nine-figure loans. Three Arrows had an estimated $600 million worth of exposure to Terra.
Local media accused Kim of supporting LUNA online and selling part of his stake before Terra’s fall, but he told Bloomberg that Hashed avoids making trading advice. The CEO of Terraform Labs, Do Kwon, often used Twitter to promote the token to his army of followers in the lead-up to its demise. In addition to the various lawsuits against Terraform Labs and Kwon, the company’s employees have been barred from leaving South Korea.