A crypto investor who received in early to Terra (LUNA) is reporting staggering losses within the billions.
In response to 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 12 months, LUNA, now rebranded as Terra Luna Traditional (LUNC), misplaced basically 100% of its worth in only a few days.
In response to 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 initiatives.
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 12 months, 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 comprehend was that LUNA was able to falling to efficient zero in a matter of days and that this might catalyze a credit score squeeze throughout the trade that will put important strain on all of our illiquid positions…
We had various kinds of trades that all of us thought have been good, and different folks additionally had these trades. After which they form of all received tremendous marked down, tremendous quick.
As a result of LUNA simply occurred, it was very a lot a contagion the place folks have 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 form of successfully hunted these positions.”
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