Blockchain Firm Losses $3.5 Billion As Terra (LUNA) Crumbles

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Hashed, a Seoul and Silicon Valley based crypto assets fund and community builder has lost over $3 billion in the wake of Terra (LUNA) collapse. The venture capital is a well known financier of Terra and their relationship goes as far back as 2019. Terra’s recent decline has cost the VC huge chunks of money.

Over 49.9 million accumulated in losses directly linked to Terra

As at time of writing, there is no direct word from Hashed as to what this figure is exactly, or what Terra’s collapse means for them.

However, on chain data shows that Hashed had staked millions of dollars across three mainnets in LUNA. 27 million  on the Columbus 3 mainnet, 9.7 million for the Columbus 4 mainnet, and 13.2 million on the current Columbus 5 mainnet, bringing the figure very close to $50 million.

Hashed talked about working with Terra in 2019

In a blog post published by the firm on popular blogging platform, Medium, Hashed expressed excitement about working with Terra and explained why they opted for the Blockchain. The blog post reads “While Bitcoin and other cryptocurrencies provided appealing features such as no government control, international remittance without interference, and easy storage of assets than physical money, lack of price stability prevented them from displacing most forms of fiat money.”

Ledger Nano X - The secure hardware wallet

It could be noted from the blog post that Hashed believed Terra could offer the best blockchain services in South Korea as shown by this,

“Terra has created a decentralized stablecoin that reflects the universal features of the current fiat monetary systems. Terra reinvests economic growth to provide ongoing discounts to consumers, incentivizing smart consumers to choose its payment system and stay.”

Overall, Data has shown that Hashed has lost over $3 billion since Terra-Luna’s collapse.

Do Kwon Proposes Terra 2.0 

The founder of Terra, Do Kwon has proposed new measures to counter the unexpected collapse of the former leading Blockchain.

In a tweet made on May 18th, Do kwon explained that Terra’s governance prop is to rename the existing network Terra classic, Luna classic ($LUNC) and rebirth a new Terra Blockchain. 

He further went on to note that if the proposal is successful, a final snapshot will be taken of the Terra classic network at block 77900000 and a new network will be born. On a final note, he added that he’s excited for this future and looking forward to rebuilding with the community.

 

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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