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The collapse of Terra Luna has claimed another victim; Hashed.

What Happened to Luna?

Most people in the crypto space will have heard about the demise of Terra’s Luna cryptocurrency. The company offered investors a staking platform as well as an algorithmic stablecoin called UST.  Earlier this year, the stablecoin, unfortunately, lost its peg to the US dollar and millions of Luna tokens were minted in an attempt to bolster the project’s reserves and regain the peg.

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However, rather than helping the issue, this move devalued Luna, exacerbating the problem. As Luna dropped, even more tokens were minted in an attempt to prop up reserves, leading to a downward spiral. Eventually, continued token minting in combination with Luna getting shorted heavily led the project to crash by over 99%.

How did this Effect Hashed? 

With so many investors viewing the Terra platform as a safe staking platform where users could earn rewards, this crash left a lot of investors out of pocket. Among them, was the South Korean venture capital fund Hashed.

In an interview with Bloomberg, it was revealed that Hashed took on heavy losses from a large Luna investment. Simon Seojoon Kim, the CEO of Hashed, stated that the firm had purchased 30 million Luna tokens early into the project’s life.  Back in April when the price of Luna peaked, these tokens would have been worth around $3.6 billion.

While these losses were undeniably heavy, Kim hasn’t lost his faith in cryptocurrency. His firm Hashed is already planning on launching another funding round toward the start of next year. While Kim hasn’t disclosed how much he hopes to raise, Hashed has previously raised over $300 million in prior rounds.

All in all, the collapse of Luna led to the wiped around $40 billion from the crypto space in just a matter of days. Retail and institutional investors alike lost out heavily due to the collapse of Luna. A previously legendary but now defunct fund, Three Arrows Capital, was one notable victim of the Luna collapse.

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