Following the single largest wealth destruction event in crypto history, some of Terra’s most prominent backers have commented on their investments in the failed project. Some of the Terra ecosystem’s largest investors, including Galaxy Digital, Delphi Digital, and Pantera Capital, have commented on Terra’s implosion last week.
Top Terra Supporters Reflect on the Network’s Demise
Some of Terra’s most prominent backers have spoken out about the project’s devastating demise.
On Wednesday, just a few days after Terra’s $40 billion collapse, some of its biggest investors and most vocal supporters finally broke their silence and shared their thoughts on the incident.
Galaxy Digital CEO Mike Novogratz, who famously got a LUNA-themed tattoo when the token hit $100, described Terra as “a big idea that failed” in a letter to shareholders, partners, and the wider crypto community.
Novogratz commented on his ink in the note, saying it “will be a constant reminder that venture investing requires humility.”
He also blamed the debacle on the challenging global macro backdrop and the cyclical nature of cryptocurrency. Galaxy had approximately $400 million in LUNA as of December 31, 2021.
At its peak, LUNA was one of the most valuable cryptocurrencies, trading for $119. It is now worth fractions of a penny.
While Novogratz did not say whether his fund lost money on its LUNA investment in the letter, a May 13 statement from Galaxy revealed a $300 million net income loss for the quarter.
This represents a 12% drop from the fund’s March 31 net asset value, indicating that the loss was most likely caused by LUNA’s demise.
Delphi Digital, a well-known cryptocurrency research firm with a venture investment arm, also revealed in a blog post on Wednesday that the fund had lost its entire position in LUNA. Delphi stated that its investment began at 0.5 percent of the fund’s net asset value in early 2021 and gradually increased to around 13 percent of net asset value at peak LUNA prices.
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