According to on-chain data, the collapse of the Terra cost blockchain company caused $3.5 billion in losses. Against the background of the event, the investment company Delphi Digital could lose up to 13% of its assets – this was equivalent to the highest value of purchased LUNA tokens.

Delphi Digital representatives acknowledged they had concerns about the design of UST and LUNA, but LFG With its reserve fund to avoid the “unthinkable”.

“We miscalculated the death spiral risk. We sweated a lot because of it last week and we deserved it. Criticism is fair and we accept it”The company wrote.

Delphi Ventures kicks off by acquiring LUNA in Q1 2021 at a discount of 0.5% NAV at that moment. As the asset grew, the position increased. In February 2022, the firm invested $10 million in LFG. Now, having failed to sell a single coin, Delphi Digital is forced to reflect a “huge unrealized loss” in its financial statements.

“Unfortunately, the reserves [LFG] It did not grow fast enough compared to the UST supply. Combined with the decline in Bitcoin value, it turns out that maintaining excess liability is prohibited.”company announced.

Hashed joined the Terra investment round for $25 million in 2021.

According to the data on the chain, the startup has locked 27M LUNA, 9.7M LUNA and 13.2M LUNA back-to-back in staking. In total, these losses can be estimated at $3.5 billion, according to CoinDesk.

In an interview with the publication, company representatives explained its financial stability and no significant impact on Hashed Ventures.

In South Korea, where Terra is popular, there were 200,000 investors in the project, according to Yonhap’s calculations.

The Local Financial Services Commission (FSC) and Financial Supervision Service (FSS) have requested information from cryptocurrency exchange operators regarding transactions related to Terra USD and LUNA.

Recall that representatives of Pantera Capital announced that before the collapse of the project, 80% of the position in the tokens of the Terra ecosystem was closed.

Earlier, Forbes described the collapse of the project as the “fifth reboot” of the crypto market.