Pantera Capital, one of Terraform Labs’ big backers, made nearly 80% of its Terra (LUNA) investment before TerraUSD (UST) collapsed last week.
Joey Krug, chief investment officer at Pantera Capital, said: “The market was quite a bubble last year. So we were out of most of our positions before this happened “about 80% of the last year.”
Pantera Capital has invested at least twice in Terraform Labs, once backing a $25 million round in January 2021, then joining a $150 million fund in July 2021.
Recently, Krug has releasedexplainPantera’s LUNA investment is separate from its investment in Terraform Labs and takes place in the summer of 2020 following LUNA’s market launch.
“We reduce our position over time. due to a large increase in profits and to maintain a diversified portfolio.”say “We initially invested in LUNA because of the advancements we saw in developer adoption, payment adoption, and the broad ecosystem built on Terra.”
And because Pantera withdrew most of its investment early, As a result, it generated significant profits for the company, with Pantera Capital partner Paul Veradittakit turning $1.7 million to $170 million for the company.
meanwhile Other Terraform-backed venture capital firms are at a loss. Because Terra’s original LUNA token lost almost all of its value due to UST crash.
When Pantera noticed that UST dropped its peg last week, has also sold its LUNA holdings, up from the remaining 20% of the investment.
“We sold 2/3 of that at an average price of $25.6,” Krug said, “but the rest was staked through LUNAX, so it couldn’t be sold.” LunaX It is liquid staking by Stader Labs.
The UST failure affects the entire Terra ecosystem, and while Terraform hopes to rectify the situation, Terraform Labs CEO Do Kwon has proposed a plan to split Terra to create a new blockchain.
refer : LINK
The post Pantera Capital, one of Terra’s investors, says it sold off nearly 80% before UST collapse appeared first on Bitcoin Addict.