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The collapse of Terra was worth $3.5 billion in losses to blockchain company Hashed, 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 the UST and LUNA, but believed in the ability to LFG with its reserve fund to prevent the “unthinkable”.
“We have miscalculated the risk of a ‘death spiral’. We’ve had to sweat a lot over the last week because of it, and we deserved it. The criticism is fair and we accept it.”, — wrote the company.
Delphi Ventures began with the purchase of LUNA in the first quarter of 2021 by 0.5% of NAV at the time. The position increased as the asset grew. In February 2022, the firm invested $10 million in LFG. Now, not having time to sell a single coin, Delphi Digital is forced to reflect a “large unrealized loss” in the reporting.
“Unfortunately, reserves [LFG] did not grow fast enough compared to the UST offering. Combined with the fall in the value of bitcoin, the overhang of liabilities was prohibitively large for protection. “, — explained in the company.
Hashed in 2021 participated in the Terra investment round for $ 25 million.
According to on-chain data, the startup consistently blocked 27 million LUNA, 9.7 million LUNA and 13.2 million LUNA in staking. In total, these losses can be estimated at $ 3.5 billion, according to CoinDesk.
In an interview with the publication, representatives of the company said about the financial stability and the absence of a significant impact on Hashed Ventures.
In South Korea, where Terra was popular, investors in the project were 200,000 people, according to Yonhap calculations.
The Local Financial Services Commission (FSC) and the Financial Supervisory Authority (FSS) have requested information from cryptocurrency exchange operators about transactions related to Terra USD and LUNA.
Recall, representatives of Pantera Capital announced the closure of an 80% position in the tokens of the Terra ecosystem before the collapse of the project.
Earlier, Forbes called the collapse of the project the “fifth reset” of the crypto market.
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