Hashed Lost $3 Billion in Terra Meltdown, CEO Tells Bloomberg – Crypto Briefing | Omd Cialis

The central theses

  • Hashed lost more than $3 billion in paper winnings on its LUNA bet, the company’s CEO Simon Seojoon Kim told Bloomberg.
  • The venture capital firm was one of several crypto giants hit hard when Terra plummeted to zero in May.
  • Kim said the company plans to increasingly focus on GameFi and will launch a new fund in the future.

Share this article

Although Hashed has had great success on Terra, Kim said his belief in crypto hasn’t waned.

Hashed CEO confirms LUNA losses

Hashed lost more than $3 billion on its Terra bet, according to a new report published in Bloomberg today.

The venture capital firm’s CEO, Simon Seojoon Kim, revealed in an interview on Wednesday that the firm bought 30 million LUNA in Terra early and lost most of its investment when the network collapsed. LUNA peaked in April with a market value of around $119, weeks before Terra’s UST stablecoin lost its peg to the dollar, leading to a spectacular implosion that wiped out around $40 billion in value in a matter of days . Hashed’s 30 million tokens were worth about $3.6 billion at its peak.

Kim told Bloomberg: “There is no such thing as a portfolio that guarantees success, and [Hashed makes] Investing in that spirit.” Hashed was one of several top industry players to suffer in the aftermath of the Terra explosion. The most notable was Three Arrows Capital, the once-legendary crypto hedge fund co-run by Su Zhu and Kyle Davies. The now-bankrupt Three Arrows had an estimated $600 million commitment from Terra, and creditors claim the company owes $2.8 billion to lenders including Voyager Digital, Celsius and BlockFi, after being issued with a series of unsecured loans had defaulted on nine-figure loans.

After Terra’s collapse, local media accused Kim of supporting LUNA online and selling part of his position before it collapsed, although he recounted it Bloomberg that Hashed avoids trading recommendations. Terra dominated crypto social media in the run-up to its collapse, with outspoken Terraform Labs CEO Do Kwon regularly using Twitter to promote the token to his army of supporters. Both Kwon and Terraform Labs are now facing multiple lawsuits alleging fraud and misleading investors, and the company’s employees have been banned from leaving South Korea.

Hashed turns to GameFi

Kim told Bloomberg that Hashed is now looking to invest more in the GameFi sector, backing the notion that more gaming companies could start using blockchain technology to allow players to trade in-game tokens . Hashed previously powered Axie Infinity’s The Sandbox and Sky Mavis, two of today’s biggest GameFi players.

Kim said in the interview that the emergence of GameFi titles could arise within the metaverse “A large number of workstations as assets are exchanged between the virtual and the real world.” Although space is still in its infancy, examples of GameFi-related jobs include those in gaming guilds, where groups of gamers gather to exchange assets and earn revenue from play-to-earn games like Axie Infinity .

Hashed raised $180 million to launch a new fund in December and has deployed about half of the capital so far. Once that runs out, Kim said, the company will build a new arm to continue investing in Web3.

Disclosure: At the time of writing this article, the author of this article owned ETH and several other cryptocurrencies.

Share this article

Leave a Comment