Fund to earn millions from investing in Terra (LUNA)
- Posted on June 1, 2022
These funds made big money by investing in Terra before it collapsed
Earlier this month, major cryptocurrency Terra
When its native TerraUSD stablecoin crashed and lost over 97% of its value
Below $0.30, nearly $24 billion was wiped from the market cap of both tokens, both within 24 hours.
What you should know
While many lost their fortunes in the spectacular market crash, which some believe was caused by faulty protocol design, others made their fortunes from Terra’s rise and sold off before the ecosystem died out.
According to a CNBC report on Sunday, venture capital firm Pantera Capital told the outlet that its $1.7 million investment in Terra paid off 100 times. Also, Hack VC and CMCC Global did not share profits, but the former closed positions in December and the latter in March, indicating that they both received a huge return on their investment.
CNBC describes the Terra ecosystem as a “plan” that “relies heavily on belief and promises of future rewards, coupled with a complex set of code, with little cash to back the entire deal.”
At its peak, Terra and TerraUSD had a combined market capitalization of nearly $60 billion, as the article states, a huge sum that essentially disappeared in a single day.
Terra developers released their new token, Luna 2.0, on Saturday, which is down more than 73 percent since it began trading, and is currently priced at $5.65.
These funds made big money by investing in Terra before it collapsed