Early Terra (LUNA) Investor Reveals $3,600,000,000 Loss Following Historic Crypto Collapse: Report
A crypto investor who acquired in early to Terra (LUNA) is reporting staggering losses within the billions.
Based on 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 Might.
Kim says that he purchased 30 million LUNA tokens when the crypto asset was in its infancy, which ended up being price over $3.6 billion throughout LUNA’s value peak in early April.
In Might of this yr, LUNA, now rebranded as Terra Luna Traditional (LUNC), misplaced primarily 100% of its worth in only a few days.
Based on Kim, he hasn’t misplaced religion within the digital asset house regardless of the heavy losses he incurred and plans to make additional investments, particularly into GameFi tasks.
The investor is one among 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 analogous story about LUNA’s collapse.
The agency’s CEO Su Zhu stated that the implosion of the Terra was a contributing issue to 3AC’s struggles and eventual liquidation.
“What we failed to comprehend was that LUNA was able to falling to efficient zero in a matter of days and that this could catalyze a credit score squeeze throughout the business 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 acquired 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 business sort of successfully hunted these positions.”
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