Hashed Wallet Takes $3.5 Billion Hit, Delphi Digital Discloses Loss After Terra's LUNA Collapse

The collapse of the tokens linked to the Terra ecosystem, stablecoin terraUSD (UST) and Luna (LUNA), has led to some major investors coming clean and detailing their losses. Two more backers of Terra are disclosing exactly how their balance sheets have been affected. CoinDesk reports: Delphi Digital, a research firm and boutique investor, said in a blog post that it always had concerns about the structure of UST and LUNA, but believed that the sizable reserves in the Luna Foundation Guard, a nonprofit that supports the Terra network, would prevent the unthinkable from happening. The firm wrote that in the first quarter of 2021, Delphi Ventures Master Fund purchased a small amount of LUNA, worth 0.5% of its net asset value (NAV) at the time. That position grew as LUNA's value increased and the fund increased its holdings, including a $10 million investment in the LFG's funding round in February. That investment is now worthless. While Delphi said that it didn't sell any LUNA, it's now sitting on "a large unrealized loss."

One of Terra's other prominent backers is Hashed, an early-stage venture fund based in Seoul, South Korea. The company played a part in Terra's 2021 venture round, where it helped raise $25 million according to Crunchbase data. Publicly, Hashed has said that it is "financially sound" and Hashed Ventures hasn't been affected by the crisis. Hashed didn't immediately respond to a request for comment, but on-chain data shows that the firm had staked over 27 million in LUNA on the Columbus 3 mainnet, 9.7 million in LUNA for the Columbus 4 mainnet and 13.2 million in LUNA on the current Columbus 5 mainnet. All in all, Hashed's losses amount to over $3.5 billion using pricing data from early April.

Fake loss of fake currency isn't accurate

[tphb]

"Hashed" invested $25M. They lost $3.5B in fake money. It never existed, never had value, and so was never lost. They are just out $25M, poured down the drain.

Re:Fake loss of fake currency isn't accurate

[Lisandro]

Seriously, i feel like i'm about to pop a vein every time i read about crypto "market cap".

If i create my own BTC fork shitcoin, with a maximum of 100,000,000 tokens, and i manage to sell one to some poor doofus for $10, apparently i suddenly created $1bn worth of wealth.

Re:

[arglebargle_xiv]

Yup. Reading this stuff is like listening to five-year-olds arguing over whether the guy's imaginary dragon could beat the girl's magic pink unicorn, it's all just delusional fantasy. I mean, it's OK when five-year-olds play around with this, but these guys are supposedly adults.

Re:

[awwshit]

> Hashed didn't immediately respond to a request for comment, but on-chain data shows that the firm had staked over 27 million in LUNA on the Columbus 3 mainnet, 9.7 million in LUNA for the Columbus 4 mainnet and 13.2 million in LUNA on the current Columbus 5 mainnet.

25 + 27 + 9.7 + 13.2 = 74.9

Still a far cry from 3.5B. If you look at VCs and folks that invest in startup type businesses, they tend to cast a wide net - expect most of them to fail and make up for it on the ones that do not. Look at WeWor

Re:

[iggymanz]

but any halfwit would know not to throw any net towards cryptocoin or worse crypto "stablecoin". Might as well light it on fire.

Re:

[gweihir]

Well, "nil-wit" is the new halfwit, obviously.

Re:

[h33t l4x0r]

13.2 LUNA staked on the current mainnet. So still only $25M in real money

Re:

[gweihir]

"Hashed" invested $25M. They lost $3.5B in fake money. It never existed, never had value, and so was never lost. They are just out $25M, poured down the drain.

Indeed. Only money that actually went in at some time was lost. Everything else was purely imaginary, probably fueled by too much drugs, greed and stupidity.

Re:

[h33t l4x0r]

Meh, CEO got paid, devs got paid, Theoretically there's some IP that's worth something. Under a different brand with tweaked algos of course. Investors are unhappy but not giving up I imagine.

Re:Fake loss of fake currency isn't accurate

[ThomasBHardy]

I did some consulting work for Caesar's Palace a good while back. Work during the day, hang out in the Casino and Vegas in the evenings and stayed in the hotel, comped. Was working with a back office guy who was a really great guy. His comment was that when you bought chips, you'd already lost.

No matter how much money you "won" until the minute you cashed out, you hadn't won anything. It's all theoretical.

Crypto's no different. If you didn't cash it out, it was never yours. No one "lost billions". They failed to exit with their money Just like gamblers.

What I don't get, is if you are a investment group, why not manage your risks? At a minimum, as it skyrocketed, they should have cashed out the value of their initial stake plus a modest profit, so they were only left playing with the house's money.

"The unthinkable" = "we were too dumb"

[gweihir]

Seriously, whenever anybody blabbers about "the unthinkable", they just do not want to admit they were too stupid to see reality. Also, why does the story use the term "investment", when it is all about gambling?

Re:

[Lisandro]

See also journalists describing the collapse of Terra/Luna as a "black swan event". Like this is the very first time an algorithmic "stablecoin" crashes and burns horribly.

So those real US Dollars went somewhere

[rsilvergun]

It would be interesting to figure out who's got them now. They didn't just disappear. Somebody got away with them.

Re:

[Lisandro]

They were never really there. People love to quote figures in terms of market cap, which really makes no sense for cryptocurrencies. The number of actual US Dollars in circulation within these is way, way smaller.

Feature not a bug

[rantrantrant]

The thing to understand with Bitcoin, MemeCoin, UnstableCoin, et al. is that their volatility is the very feature that draws the gambl... ahem, "investors."

Oh my!

[Ol Olsoc]

three and a half billion here, three and a half billion there, after a while, we're talking about real money.

Short Squeeze on XMR

[FeelGood314]

Looking at the crypto markets most of the losses were over 7 days ago. The market has been pretty even for the last week but I noticed people are scrutinizing the exchanges a lot more. I have suspected several exchanges have had naked shorts of Monero (XMR) and Zcash for a while. Looks like someone is trying to cover their positions. I wouldn't invest in any of it. The exchanges are almost as shady as the supposedly regulated stock exchanges and trading houses. My view is only buy crypto currencies if you are actually going to use it. So unless you are a drug dealer or a reporter in, well, half the world, you probably shouldn't own any cryptocurrency.