Delphi Ventures lost at least $10 million on LUNA, while Terraform Lab’s backer Pantera opened up about selling 80% of its investment before the crash.
Two famous entities within the crypto space that encouraged Terra’s growth in the market have brought details on how their balance sheets got harmed due to last week’s crash.
This week, digital asset research firm Delphi Digital highlighted an autopsy on the recent events that have severely damaged the Terra ecosystem. Terra’s algorithmic stable coin UST lost its expected $1 level, making its price crumble down negatively, affecting its native asset LUNA.
Delphi Digital admitted in a blog post that it always knew that something like this event would take effect. However, it felt that a sustained reserve by the Luna Foundation Guard (LFG), an entity that backs up the Terra ecosystem, would prevent huge losses.
The company acknowledged its error by saying that it understood the risks of the algorithmic model in advance and intended to show complete transparency about them at all times; however, it could not get rid of the consequences.
A Loss of 10 Million Dollars
The company, a sponsor of LFG, highlighted in the publication that the error had cost Delphi Ventures millions in losses. According to the report, Delphi Ventures Master Fund acquired a small amount of LUNA at the beginning of 2021, equivalent to 0.5% of its net asset value (NAV).
That position evolved as the price of LUNA also reached favorable peaks. The fund progressively increased its holdings, including a $10 million investment in LUNA, as part of a sale by LFG. Native Terra tokens counted on about 13% of Delphi Ventures’ NAV when they hit their peak price.
Delphi admitted that it didn’t sell any LUNAs during this time, so the recent crash has left it with a massive loss. The $10 million investment got lost in its entirety.
Last month, Delphi said in a newsletter that Terra’s Bitcoin investment offered increased security to defend UST’s peg to the dollar” and reduced the risks of a deadly crash. However, the company said that guarantee was not enough. They have received criticism for this over the last week, and they think they deserve it all.
Pantera Capital Sold before the Crash
Another high-profile Terra backer, Pantera Capital, also explained how the fall of LUNA and UST had damaged him. Pantera, an American hedge fund that focuses on digital assets, had invested at least twice in Terraform Labs, the development company behind Terra.
The company participated in a round of USD 25 million in 2021 and then, in July, in another competition. Although the investments in LUNA were separate and were made previously, in 2020, Joey Krug, a co-chief investment officer of Pantera Capital, highlighted this in an interview with that medium.
By: Jenson Nuñez
