Delphi Digital said it was wrong in its analysis of the Terra ecosystem and UST.
Delphi Labs was exposed to the Terra ecosystem, developing on the network.
The firm will now use a cross-sectional team to prepare long-term plans.
Cryptocurrency research firm Delphi Digital, in a blog post published on May 18, said that it was wrong in its analysis of the risks associated with the UST stablecoin. Delphi Digital had published multiple reports in the past that spoke positively on Terra, and Delphi ventures had also made investments in Terra. Delphi admits that it had made a mistake in the lengthy blog post and wanted to offer complete transparency on how it had invested in the Terra ecosystem.
Delphi Digital was quite honest in their perception of Terra, saying,
“we believed in the Terra ecosystem, we made a big bet on it, and it didn’t turn out as expected, costing us significant money and time.”
At its peak, LUNA and other Terra tokens had accounted for 13% of Delphi Ventures’ NAV.
Most of the exposure to Terra came through Delphi Labs, the software research and development arm. This unit was developing on Terra and was funded by internal capital. It had worked on several projects and initiatives, most notably Astroport.
The post is more a less a postmortem of what went wrong with respect to Delphi Digital’s investments. One of the priorities in this change is to create a cross-sectional team from Delphi Labs and Delphi Research to evaluate potential long-term plans.
Moving forward, it seems like Delphi Digital will take its time before announcing its exact steps. For the moment, the team is dealing with the setback faced by the crash, as are so many other entities.
UST Depegging and LUNA Crash Bring Chaos to Market
The approximate $40 billion that has been lost in the crash of UST and LUNA has roiled the markets. This has been one of the most dramatic incidents in the crypto market since the Ethereum DAO and the Mt. Gox hacks. Many investors are left picking up what little pieces there are left.
For Terra and its founders, it may get even worse. Co-founder Do Kwon has been asked to attend a hearing by South Korean lawmakers, while the Luna Foundation Guard does what it can to salvage the ecosystem. Such events do not offer an optimistic forecast for Terra.
As for Terra’s community members, they too are angered by recent events. 90% of the Terra community has voted against Do Kwon’s hard fork proposal. Binance’s Changpeng Zhao also said that he does not think a hard fork is the solution.