Venture Capital Firm Hashed Lost $3.6B to LUNA Crash

Digital currency venture capital firm, Hashed has revealed that it lost as much as $3.6 billion in its LUNA bet following the collapse of the Terra ecosystem back in May.

Speaking to Bloomberg, Hashed Chief Executive Officer, Simon Seojoon Kim said the venture capital firm acquired as much as 30 million LUNA tokens in the project’s early days.

At the point when LUNA attained its All-Time High (ATH) back in April, Kim revealed that the company’s investment would have been worth as much as $3.6 billion if it had liquidated its holdings at the time.

The collapse of LUNA came as a very big blow to the digital currency ecosystem, a move that goes beyond just the crash of the associated algorithmic stablecoin, TerraUSD (UST) to the fall of many other companies that had exposure to the Terra ecosystem tokens. With the fall of the LUNA coin, Three Arrows Capital (3AC) has gone bankrupt, and by extension, the trend has also impacted the once-renowned crypto lending firm, Voyager Digital which 3AC is owing as much as $650 million.

The cataclysmic impact and losses that Kim revealed Hashed suffered also trickled down to the clients of Celsius Network, BlockFi, Vauld Group, and Babel Finance amongst others, most of whom have a level of exposure to the LUNA ecosystem.

Hopes Dashed Hashed Still Committed to Crypto

In the interview with Bloomberg, Kim reiterated that despite the loss it has suffered, Hashed is not giving up on the prospect in the digital currency ecosystem just yet.

It said it plans to raise new funds that it plans to deploy into funding blockchain-based gaming protocols, a niche that comes off as one of the most lucrative in the ecosystem as of today. Kim himself attained the limelight in his crypto investment journey as one of the earliest backers of gaming protocols like The Sandbox, and Sky Mavis, the parent company of Axie Infinity.

“In the tech sector, there’s no such thing as a portfolio that guarantees success, and we make our investments with that in mind,” said Kim. “We believe in the community’s growth, and that has never changed.”

While it looks ahead, Kim said the fact that some of the projects it invests in are in their experimental stages is why Hashed as a firm does not make trade recommendations.