Venture capital firm Hashed, a prominent backer of the company behind the collapsed so-called stablecoin tokens TerraUSD (UST) and Luna (LUNA), has failed, amassing a loss of more than $3.5 billion.
Based in Seoul, South Korea, the early-stage venture fund Hashed played a part in Terraform Labs’ 2021 venture round when it raised $25 million, according to Crunchbase data.
The crypto wallet linked to Hashed showed the firm still held nearly 25 million Luna, which could have netted the firm almost $3 billion if sold at the coins’ all-time high of $118 in early April.
Despite the loss, Hashed says that it is “financially sound” and has not been affected by the Luna price tumble.
The collapse of the tokens linked to the Terra ecosystem, stablecoin TerraUSD (UST) and Luna (LUNA), has led to some major investors coming clean and detailing their losses.
The Terra stablecoins, recenlty ranked among the top 10 most valuable cryptocurrencies, lost as much as 99 percent of their value. The loss of their peg to the U.S. dollar on May 9 left several investors saying they had lost their life savings. Some said on social media that they had considered suicide.
Listen to GHOGH with Jamarlin Martin | Episode 74: Jamarlin Martin Jamarlin returns for a new season of the GHOGH podcast to discuss Bitcoin, bubbles, and Biden. He talks about the risk factors for Bitcoin as an investment asset including origin risk, speculative market structure, regulations, and environment. Are broader financial markets in a massive speculative bubble?
Delphi said it had its reservations about the structure of TerraUSD and Luna, but still carried a significant exposure to the Terra ecosystem at the time of the collapse.
“We always knew something like this was possible, and we tried to stress the risks to a system like this in our research and public commentary, but the fact is we miscalculated the risk of a ‘death spiral’ event coming to fruition,” Delphi said.
“We’ve taken some heat for this over the last week, and we deserve it. The criticism is fair, and we accept it.”
Image credit: claffra / iStock, https://www.istockphoto.com/portfolio/claffra?mediatype=photography