A crypto VC firm announces that it cashed out almost all of its LUNA in time, leaving a sour taste in the mouth of retail traders.
How often have we seen bg hedge funds and banks being bailed out when financial losses were socialized?
It seems this isn't exclusive to traditional finance but a feature of the crypto industry as well. Pantera Capital, a major backer of Terraform Labs, cashed out almost 80% of its investment in LUNA in time, according to The Block
"The market has been fairly frothy over the last year and thus we'd exited the majority of our position before any of this happened. Roughly 80% over the last year, fairly gradually over time."
Joey Krug, co-chief investment officer at Pantera, told The Block that Pantera had actively managed its position in LUNA and reduced its position over time as the investment became more profitable. According to Paul Veradittakit, partner at Pantera Capital, Pantera got a cool 100X on its $1.7 million LUNA bet, which was separate from its $25 million seed round investment in January 2021.
Veradittakit, who called Anchor a " fixed-income, low-risk financial instrument" in a blog post
in April 2021, said that Pantera exited two-thirds of the remaining 20% investment in LUNA at an average price of $25.6.
The news comes against a backdrop of more potential fallout due to the collapse of UST. Evidence emerged on Crypto Twitter that @stablegains, a centralized yield provider, potentially skimmed off yield from customer funds that it had put in Anchor Protocol, a Terra-based savings protocol. With the collapse of Terra and Anchor, more companies like Stablegains may be in big trouble.
Meanwhile, the vote
on the LUNA hard fork continues, with those in favor of a hard fork firmly leading (80% at the time of writing).
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