Summary:
- Early LUNA investor Hashed lost $3 billion in the Terra collapse.
- The crypto venture capital company confirmed the news on Wednesday.
- CEO Simon Seojoon Kim told Bloomberg that the VC firm bought some 30 million LUNA tokens in Terra’s early days.
- The coins were worth over $3.6 billion after LUNA hit an all-time high in April.
- A month later, the multi-billion dollar portfolio was wiped out. Kim stressed that Hashed still believes in cryptocurrency.
- The CEO hinted that the company could explore an investment strategy focused on blockchain gaming next.
Hashed, an early investor in Terra’s LUNA (now LUNA Classic) token, lost around $3 billion in May’s crash. Hashed CEO and crypto investor Simon Seojoon Kim revealed the loss in a recent interview with Bloomberg released on Wednesday.
Founded in 2017, Hashed is a crypto venture capital firm based in San Francisco and Seoul. CEO Kim is a so-called crypto evangelist credited for backing outfits like the Sandbox in its early days.
Kim disclosed that Hashed adopted a similar approach when it decided to invest in LUNA. The crypto VC splurged the big bucks on Terra’s governance token, scooping up some 30 million coins.
In April 2022, LUNA hit an all-time high of $120. At the time, the coins owned by Hashed hit a valuation of around $3.6 billion. However, the euphoria from what seemed like a smart investment was short-lived as a historical crash followed swiftly.
A month later in May, Terra’s LUNA and UST tokens collapsed, shaving off some $40 billion from investors’ pockets and companies’ portfolios. Despite the blow to Hashed’s bag, Kim noted that the VC firm believes in the future of the cryptocurrency industry.
In the tech sector, there’s no such thing as a portfolio that guarantees success, and we make our investments with that in mind. We believe in the community’s growth, and that has never changed.
Kim added that Hashed could deploy funds towards supporting blockchain gaming and might raise fresh capital to this effect.
Aftermath Of Terra’s Collapse Not Over
The ripple effects from the fall of LUNA and TerrUSD continue to surface months after UST depegged in May and LUNA fell below pennies. Wednesday’s Hashed revelation is the latest in a string of companies shaken by the crash.
Indeed, while Hashed seems poised to carry on, other crypto companies have faired worse in the wake of the collapse. Firms like Celsius and Three Arrows Capital already filed for bankruptcy. Both companies are undergoing liquidation proceedings at press time.
Contagion from the crash also spread to centralized exchanges like Zipmex, as well as crypto brokers like Voyager Digital.