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Terra’s LUNA Crash Wiped Out $3 Billion From Hashed Portfolio: Bloomberg

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Terra’s LUNA Crash Wiped Out $3 Billion From Hashed Portfolio: Bloomberg

Summary:

  • Early LUNA investor Hashed lost $3 billion in the Terra collapse.
  • The crypto venture capital company confirmed the news on Wednesday.
  • CEO Simon Seojoon Kim told Bloomberg that the VC firm bought some 30 million LUNA tokens in Terra’s early days.
  • The coins were worth over $3.6 billion after LUNA hit an all-time high in April.
  • A month later, the multi-billion dollar portfolio was wiped out. Kim stressed that Hashed still believes in cryptocurrency.
  • The CEO hinted that the company could explore an investment strategy focused on blockchain gaming next. 

Hashed, an early investor in Terra’s LUNA (now LUNA Classic) token, lost around $3 billion in May’s crash. Hashed CEO and crypto investor Simon Seojoon Kim revealed the loss in a recent interview with Bloomberg released on Wednesday. 

Founded in 2017, Hashed is a crypto venture capital firm based in San Francisco and Seoul. CEO Kim is a so-called crypto evangelist credited for backing outfits like the Sandbox in its early days. 

Kim disclosed that Hashed adopted a similar approach when it decided to invest in LUNA. The crypto VC splurged the big bucks on Terra’s governance token, scooping up some 30 million coins.

Simon Seojoon Kim Simon Seojoon KimPhotographer: SeongJoon Cho/Bloomberg
Simon Seojoon Kim
(Source: Photographer -SeongJoon Cho/Bloomberg)

In April 2022, LUNA hit an all-time high of $120. At the time, the coins owned by Hashed hit a valuation of around $3.6 billion. However, the euphoria from what seemed like a smart investment was short-lived as a historical crash followed swiftly.

A month later in May, Terra’s LUNA and UST tokens collapsed, shaving off some $40 billion from investors’ pockets and companies’ portfolios. Despite the blow to Hashed’s bag, Kim noted that the VC firm believes in the future of the cryptocurrency industry.

In the tech sector, there’s no such thing as a portfolio that guarantees success, and we make our investments with that in mind. We believe in the community’s growth, and that has never changed.

Kim added that Hashed could deploy funds towards supporting blockchain gaming and might raise fresh capital to this effect.

Aftermath Of Terra’s Collapse Not Over

The ripple effects from the fall of LUNA and TerrUSD continue to surface months after UST depegged in May and LUNA fell below pennies. Wednesday’s Hashed revelation is the latest in a string of companies shaken by the crash. 

Indeed, while Hashed seems poised to carry on, other crypto companies have faired worse in the wake of the collapse. Firms like Celsius and Three Arrows Capital already filed for bankruptcy. Both companies are undergoing liquidation proceedings at press time. 

Contagion from the crash also spread to centralized exchanges like Zipmex, as well as crypto brokers like Voyager Digital.

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Ethereum

Huobi Founder Keen On Selling Majority Of His Stake At $3 Billion Value: Report 

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Huobi Founder Keen On Selling Majority Of His Stake At $3 Billion Value: Report 
  • Crypto exchange Huobi’s founder Leon Li is reportedly in talks with financiers to sell his stake in the firm
  • Potential buyers include Justin Sun of Tron and FTX CEO Sam Bankman-Fried

Per a recent Bloomberg report, Huobi founder Leon Li is currently in talks with a bunch of investors to sell the majority of his stake in the Huobi crypto exchange at a price of nearly $1 billion. 

Huobi Founder Is Reportedly In Talks To Sell 60% Of His Stake

Per a recently published Bloomberg report, Huobi’s founder is reportedly in talks with financiers to sell 60% of his stake to potential buyers. The report further states that the deal could be finalized sometime later this month. 

Citing people familiar with the matter, Bloomberg added that the potential list of buyers involves prominent crypto industry names including Justin Sun, founder of cryptocurrency Tron and Crypto billionaire and CEO of FTX exchange Sam Bankman-Fried. The report also adds that SBF and Sun had earlier established talks with Huobi concerning the acquisition of shares.  

In addition to this, the report mentions ZhenFund and Sequoia China as “existing backers,” who were made aware of Huobi’s decision in the shareholder’s meeting held in July. Per the report, Li is seeking a valuation between $2 billion to $3 billion. 

A Huobi spokesperson has shed more details on the matter, reporting that Li is currently in process of conducting a discussion with several international institutions concerning the stake sale, but has refused to offer specific details concerning the transaction. 

“He hopes that the new shareholders will be more powerful and resourceful and that they will value the Huobi brand and invest more capital and energy to drive the growth of Huobi,” the spokesperson said in an emailed statement to Bloomberg

Launched in 2013 in China, Huobi is one of the leading crypto exchanges that has consistently been expanding its work portfolio. The exchange has recently acquired a license to operate and offer services in Australia and had earlier acquired the necessary permissions to operate in New Zealand. 

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Robinhood To Face US Market Manipulation Claims Over “Meme Stock” Rally : Reuters Report

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Robinhood To Face US Market Manipulation Claims Over “Meme Stock” Rally : Reuters Report

TL;DR

  • According to a U.S judge, the stock trading platform Robinhood Markets Inc should face market manipulation claims.
  • This lawsuit was one of many brought against the platform after it temporarily barred customers from purchasing stocks back in Jan 2021, such as GameStop and AMC.
  • Robinhood prices surged in May after the CEO of FTX SBF announced that he had purchased stake in the company.

Robinhood Judge Rules That Robinhood Should Face Market Manipulation Claims

According to Reuters, a U.S Judge ruled on Thursday that stock trading platform Robinhood Markets Inc should face market manipulation claims.

Judge Cecilia Altonaga said in the ruling that investors in GameStop Corp (GME), AMC Entertainment Holdings INC (AMC), and seven other stocks could proceed with the proposed class action lawsuit.

This lawsuit comes after retail trading company Robinhood temporarily barred customers from buying certain stocks in January 2021. 

The “meme stock rally” was mainly social media-fueled, and the shares of the companies mentioned were involved in a short squeeze that led Robinhood and other trading platforms to restrict retail trading. 

Attorneys for Robinhood did not reply to a request for comment. 

Robinhood Stocks Soared after SBF Confirmed he had Stake in company

Robinhood stock prices surged earlier in May of this year after the CEO of crypto exchange FTX Sam Bankman-Fried announced he had purchased a 7.6% stake in the company.

According to the filing, SBF paid a total of $648 million to acquire a 7.6% stake in Robinhood.

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Ethereum Merge Tentative Date Is Set And It’s Sooner Than You Think

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Ethereum Merge Tentative Date Is Set And It’s Sooner Than You Think
  • The Ethereum core developer team has discussed the tentative dates for the Merge to take place.
  • The dates are not definitive; however, the devs have agreed that the Bellatrix update would land on September 6, and the Paris update would target September 15.
  • The Merge is planned to take place before the end of September.
  • It aims to resolve the core problems Ethereum faces today, such as security, scalability, and environmental stability.

The Ethereum Core developer team suggested possible dates for the Merge on their latest Consensus Layer Call earlier today. 

The Merge, which successfully completed the final testnet phase on August 11 of this month, is one of the most anticipated events in Ethereum’s history. 

Read more: Ethereum Price Headed to $2,000 as Ethereum Goerli Merge Goes Live

The initial dates were set on September 17; however, during the call, the core developers agreed on roughly two dates for the main upgrades. The consensus so far is that the 144896 epoch for the Bellatrix upgrade would land on September 6, and the Paris upgrade would be completed by September 15.

As discussed on the call, the developers mentioned that the dates are not definitive and can be changed within the coming weeks. 

The Merge should occur after the Bellatrix mainnet upgrade before the end of September. Ethereum’s Eth token has already rallied 17.5% in anticipation of the Merge. The upgrade will go as scheduled unless the Ethereum hash rate falls significantly, which would cause lower block times and delay the Merge’s expected time. 

The Merge aims to resolve security, scalability, and environmental sustainability. All of these issues have been concerns that have halted Ethereum adoption and the adoption of other cryptocurrencies on the Ethereum network.

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