Hashed Admits to Losing $3.5 Billion From Terra LUNA Collapse

Key Takeaways:

  • Hashed has lost nearly $3 billion as a result of the Terra (LUNA) crash. 
  • Delphi Digital, a boutique investor and research business, has always had reservations about the structure of UST and LUNA.
  • The company put $10 million into LFG’s February 2022 funding round, which is now worthless. 
  • Delphi indicated that while it did not sell any LUNA, it has incurred a “substantial unrealized loss.”

Hashed, a crypto assets fund and community builder based in Seoul and Silicon Valley has lost nearly $3 billion as a result of the Terra (LUNA) crash. Terra’s venture capital is a well-known lender, and their relationship dates back to 2019.

The failure of tokens tied to the Terra ecosystem, stablecoins terraUSD (UST), and Luna (LUNA), has prompted several prominent investors to come clean and reveal their losses. Two additional Terra backers have detailed how their balance sheets have been impacted.

Delphi Digital, a boutique investor and research business, revealed in a blog post that it has always had reservations about the structure of UST and LUNA, but assumed that the significant assets identified in the Luna Foundation Guard would prevent the unthinkable from happening.

“We believed a high level of external collateralization was a necessity in the long run, and we saw this as a path to get there. Unfortunately, it didn’t grow fast enough compared to UST supply, and, combined with a fall in the value of the BTC reserves, the liability overhang was too large to be defended,” Delphi said.

The company invested $10 million in LFG’s February 2022 raising, which is now worthless. Delphi stated that it did not sell any LUNA but now has a “significant unrealized loss.”

Hashed is one of Terra’s primary backers. Hashed holds around 27 million LUNA stakes on the Columbus 3 mainnet and 13.2 million on the Columbus 5 mainnet.

“We were immediately pleased with the depth of their mechanical design and execution speed,” Hashed wrote about Terra   in 2019. “They’ve done a fantastic job of execution, involving, among other things, product development, hiring, facilitation, and community participation.”

Hashed is another significant Terra sponsor. Crunchbase data show that the corporation contributed $25 million to Terra’s 2021 funding round.

In a blog post published on the popular blogging platform Medium, Hashed expressed excitement about working with Terra and explained why they chose Blockchain. “Terra has created a decentralized stablecoin that embodies the universal features of today’s fiat monetary systems.” 

Terra reinvests in economic development to deliver ongoing savings to clients, rewarding wise customers that accept and use its payment mechanism.

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Baisakhi Mishra

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