Venture capital firm Pantera Capital cashed out about 80% of its investments in the Terra ecosystem before the project collapsed, with huge profits. This was reported to The Block by the firm’s executives.

“Over the past year, the market has moved away from fundamentals, so we’ve covered most of our position. [в Terra] before the second happens. “About 80%, pretty slow,” said Joey Krug, CIO of Pantera Capital.

The firm’s partner, Paul Veradittakit, said that early exiting investment in publication turned $1.7 million into approximately $170 million.

The company has invested at least twice in Terraform Labs, which is behind the crypto project. In January 2021, Pantera participated in a $25 million funding round, and another $150 million was added in July.

After the interview, Krug revealed that the firm has separate investments in the LUNA token. Pantera purchased the asset in July 2020, after going public, using commercial liquidity rather than venture capital.

To clarify, we did not invest in LUNA in these private funding rounds, we purchased LUNA when it was public in July 2020, not through our venture-style investments, but through our liquid trading instruments.

— Joey Krug (@joeykrug) 18 May 2022

“We were able to shrink that position as it grew and became more profitable to diversify the portfolio. “We initially invested in LUNA by assessing its adoption by developers, use for payments, and broader progress in the Terra ecosystem,” he said.

According to Krug, when the algorithmic stablecoin TerraUSD (UST) used to issue the token lost the dollar rate, the firm was able to sell most of its balances on LUNA:

“We came out of this ⅔ [позиции в активе] at an average price of $25.6″.

In July 2020, the LUNA exchange rate was in the range of $0.2-0.34. At the time of writing, the token is trading at $0.0012 (CoinGecko).

Recall that Forbes called the collapse of the project the “fifth reboot” of the crypto market.