Terra is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. Luna is the reserve currency of the Terra platform. It has three core functions: i) mine Terra transactions through staking, ii) ensure the price stability of Terra stablecoins and iii) provide incentives for the platform’s blockchain validators.
The South Korea-based venture capital firm spoke for the first time about the extent of its losses in LUNA. Despite this, it is still bullish on crypto.
- Hashed lost more than $3 billion with Terra.
- He is still optimistic and plans to raise money for a new fund.
- Se suma a las empresas que respaldaron a Terra y perdieron millones.
More than two months after the dramatic implosion of the ecosystem Earth investors continue to come forward admitting losses in the millions.
This time, one of the biggest backers of the failed project has broken her silence to finally reveal the damage her investments caused her.Hasheda cryptocurrency-focused venture capital firm, acknowledged this week a loss of more than $3 billion from its bet on Earth .
The company’s CEO, Simon Seojoon Kim, spoke exclusively with Bloomberg about the blow he receivedHashed after the collapse of LUNA, the native cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. of Earth . Kim said that the company had bought 30 million tokens LUNA during the first days of the blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. project.
The funds were valued at close refers to the closing price; similar to the same term used in stock trading. to $3.6 billion when LUNA’s price peaked in early April. However, most of the money was lost after the fall. “En el sector tecnológico, no existe una cartera que garantice el éxito, y nosotros hacemos nuestras inversiones teniendo esto en cuenta“, says Kim.
The LUNA coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. reached a price close to USD$119 in April, weeks before the stable currency currency is a medium of exchange that defines value. of Earth The US dollar, UST, lost its expected parity with the US dollar, causing a massive implosion across the entire ecosystem. Within days, both currencies had dropped to zero and over $40 billion in wealth had been wiped from the market.
Hashed still bullish on crypto
Despite high losses,Hashed has not lost faith in cryptocurrencies. During the interview, Kim was optimistic about the sector and to said that the firm plans to raise money for a third fund. in the first half of next year.
“ We believe in the growth of the community, and that has never changed. “, sostuvo. It is unclear how much capital it would expect to raise Hashed for his new fund, though Kim noted that that effort will focus on investing in new gaming startups based on Blockchain.
Like remember The Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. the firm had previously raised at least $320 million in two of its venture funds.
As cracks continue to appear in the industry due to the implosion of the Earth and the broader cryptomarket shakeout, it’s difficult to know when or even ifHashed will be able to make a new round of investment. Beyond the monetary consequences, the South Korean firm also faces criticism and accusations from local observers due to its actions during the collapse.
Another sponsor of Earth with losses in the millions
This is the first time thatHashed officially confirms the extent of the losses following the fall of Earth . In May, a informs of CoinDesk had already estimated that the fund was incurring losses of nearly $3.5 billion on its investment in LUNA. That report, which cited chain data, then revealed thatHashed had wagered ( staked ) a total of almost 50 million LUNA tokens.
The Seoul-based firm is one of many affected by the incident. As reported by DiarioBitcoin Other high-profile firms have also acknowledged multi-million dollar losses related to their exposure to that ecosystem. Delphi Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. y Capital capital is most commonly defined as the large sum of money you would use to invest. Panther were one of the first to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the issue, indicating losses of more than USD $10 million.
Since then, others have admitted losses. Perhaps the most notable firm that has been affected is thecriptofondo Three Arrows Capital (3AC) whose failed investment in Earth has led to wider consequences. The legendary hedge fund, now in bankruptcy, had an estimated $600 million in exposure to Earth . Its insolvency problem has generated a sort of contagion effect in the industry that has affected firms like Voyager Digital , Celsius y BlockFi .
More recently, the digital asset manager, CoinShares revealed significant losses for the second quarter of 2022, in part related to a stake in the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. of Earth , UST.
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Article by Hannah Estefania Perez / DiarioBitcoin
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