A crypto investor who received in early to Terra (LUNA) is reporting staggering losses within the billions.
In keeping with a brand new report by Bloomberg, Simon Seojoon Kim, a South Korean crypto investor and early LUNA adopter, is revealing $3.6 billion in losses after the Terra ecosystem disintegrated in Could.
Kim says that he purchased 30 million LUNA tokens when the crypto asset was in its infancy, which ended up being value over $3.6 billion throughout LUNA’s worth peak in early April.
In Could of this yr, LUNA, now rebranded as Terra Luna Basic (LUNC), misplaced primarily 100% of its worth in just some days.
In keeping with Kim, he hasn’t misplaced religion within the digital asset area regardless of the heavy losses he incurred and plans to make additional investments, particularly into GameFi tasks.
The investor is considered one of many affected by the collapse of the previous top-10 crypto asset.
Crypto hedge fund Three Arrows Capital (3AC), which went bankrupt earlier this yr, had an identical story about LUNA’s collapse.
The agency’s CEO Su Zhu mentioned that the implosion of the Terra was a contributing issue to 3AC’s struggles and eventual liquidation.
“What we failed to understand was that LUNA was able to falling to efficient zero in a matter of days and that this is able to catalyze a credit score squeeze throughout the trade that will put important stress on all of our illiquid positions…
We had several types of trades that all of us thought had been good, and different individuals additionally had these trades. After which they sort of all received tremendous marked down, tremendous quick.
As a result of LUNA simply occurred, it was very a lot a contagion the place individuals had been like, ‘OK, are there people who find themselves additionally leveraged lengthy staked Ether versus Ether who will get liquidated because the market goes down?’ So the entire trade sort of successfully hunted these positions.”
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