Hashed Wallets and Delphi disclose loses in billions to Terra crash

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.

Delphi Digital, a research firm, and boutique investor, admitted in a blog post that it always had concerns about the structure of UST and LUNA.

Yet, Delphi believed that the sizeable assets found in the Luna Foundation Guard 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 February 2022 raise which is now worthless.

While Delphi said that it did not sell any LUNA, it’s now sitting on “a large unrealized loss.”

Delphi was once a believer in the LFG’s ability to counterbalance any risks from the LUNA-UST relationship, ultimately LFG’s holdings were not enough to be an effective backstop once the price of bitcoin (BTC) began to quickly decline earlier in the quarter.

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 they are “financially sound” and Hashed Ventures has not been affected by the crisis.

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.

Local media in Korea report that over 200,000 investors in the country hold Terra-related tokens.