Hashed Loses Over $3.5B, Delphi Reveals $10M Loss Following Terra’s Downfall

Vignesh Karunanidhi
Hashed Loses Over $3.5B, Delphi Reveals $10M Loss Following Terra’s Downfall
Source: Plugavel

Reports reveal that Hashed and Delphi suffered catastrophic losses as they lost an estimated $3.5B and $10M, respectively, amidst the Terra downfall.

The historical fall of the Terra ecosystem has brought down several investors and major projects alongside. Keeping aside the number of investors who lost their life savings in the coin, a significant number of investors who had backed the projects also opened up about the loss they incurred.

Two major firms that had backed Terra, Hashed and Delphi Digital, revealed how the downfall affected their balance sheets.

Source: Anadolu Agency

Delphi Digital knew the fall of Terra was close

Delphi Digital, a leading crypto research firm, wrote that they were worrisome about the UST and LUNA structure in a blog. Adding to that, the only boost of confidence to them was the Luna Foundation Guard asset backing that may help prevent such a situation.

“We always knew something like this was possible, and we tried to stress the risks to a system like this in our research and public commentary, but the fact is we miscalculated the risk of a “death spiral” event coming to fruition. We’ve taken some heat for this over the last week, and we deserve it. The criticism is fair and we accept it.”

Delphi Digital

The company wrote that it had purchased LUNA for 0.5% of its net asset value and grew its holdings as the value of LUNA increased. Delphi reported a $10 million investment in LUNA in February 2022, which is now equal to zero.

Well, the firms’ belief that LFG’s capacity to tackle any risks has stooped lower.

Source: Rich Picks Daily

Hashed takes a punch to the head

Hashed, an early-stage venture fund based in San Francisco and Seoul is another major backer of Terra. The company had assisted Terra in raising $25 million in a 2021 venture round.

Even though the firm hasn’t publicly announced the size of the effect, it stays strong in its claim that it is “financially sound.” But reports from on-chain data show a different side of the claim. The company had invested approximately 27 million LUNA on the Columbus 3 mainnet, 9.7 million on the Columbus 4 mainnet, and 13.2 million on the current Columbus 5 mainnet.

Analyzing CoinMarketCap’s pricing data from April reveals the loss of an estimated $3.5 billion. The degree of the effect of Luna’s downfall is still unclear. But it is pretty much clear that the numbers of the affected still stand high.