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Europe’s largest company in the field of digital assets CoinShares due to work with the UST stablecoin from the Terra ecosystem suffered huge losses of £ 17 million ($ 21.4 million)
“When liquidating our savings in UST, the company recorded a serious loss from work in the DeFi sector in the amount of £ 17 million. It was a humiliating experience,” said the firm’s CEO, Jean-Marie Mognetti.
As the figures prepared in accordance with International Financial Reporting Standards (IFRS) show, for the whole of 2021, CoinShares’ net loss increased from £ 1.4 billion to £ 2.4 billion, although revenues more than quadrupled to £ 80.8 million. The net indicator mainly concerns losses on financial instruments. CoinShares noted that in accordance with IFRS, profits from digital assets are not displayed in the statement of financial results.
Most of the revenue came from commissions for the management of exchange-traded products issued by subsidiaries XBT Provider and CoinShares Digital Securities. It is reported that the growth of cryptocurrency rates has led to an increase in income.
According to CoinShares, while retail investments remain at a high level, large investors are abandoning XBT products in favor of other companies and the outflow of funds has reached $ 341 million.
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