- South Korean VC firm Hashed said it purchased 30 million Luna tokens in the early days of the stablecoin.
- It ended up sitting on a loss of $3.6 billion after Luna’s crash this year, which sparked a wider crypto rout.
- That’s one of the largest losses reported, surpassing even Three Arrows’ $600 million loss.
South Korean venture capital firm Hashed said it lost over $3 billion in Luna’s crash earlier this year, representing one of the biggest hits to an investor in the fallen stablecoin that set off a wave of volatility in the crypto market.
Hashed’s chief executive, Simon Seojoon Kim, said the company purchased 30 million Luna tokens in the stablecoin’s early days, a volume that would have been worth $3.6 billion when its value peaked in April, according to a report by Bloomberg. That peak came just a month before Luna lost its dollar peg and tumbled in value.
It’s also one of the largest losses reported by a firm that backed Luna. Three Arrows Capital, which filed for bankruptcy in June, was reported to have lost $600 million from Luna’s crash.
The loss is a blow for Kim, who carved a reputation for himself as a crypto evangelist and one of Luna’s earliest cheerleaders. But the VC head remains bullish on the blockchain, telling Bloomberg that Hashed would ramp up investments in GameFi, a type of video game on the blockchain where users can own assets in the games.
“In the tech sector, there’s no such thing as a portfolio that guarantees success, and we make our investments with that in mind,” Kim said in an interview with Bloomberg.
The huge loss is another ripple effect of of Terra-Luna’s crash, which wiped sparked a wider crypto rout and set off a domino-effect of crypto firms going under due to exposure to the stablecoin.
Hashed has raised $240 billion to commit back into the space since December, and Kim says the firm plans on raising another fund after the first is deployed. Hashed is moving in the opposite direction of most venture capital firms, with private crypto investments falling 31% in the last three months, Bloomberg reported.