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A crypto investor who got in early on Terra (LUNA) reports staggering billions in losses.
According to a news report from Bloomberg, Simon Seojoon Kim, a South Korean cryptocurrency investor and early adopter of LUNA, reveals $3.6 billion in losses after the Terra ecosystem collapsed in May.
Kim says he bought 30 million LUNA tokens when the crypto asset was in its infancy, which ended up being worth over $3.6 billion during LUNA’s price peak in early April.
In May of this year, LUNA, now renamed Terra Luna Classic (LUNC), lost virtually 100% of its value in just a few days.
According to Kim, he has not lost faith in the digital asset space despite the heavy losses he has suffered and plans to make further investments, especially in GameFi projects.
The investor is one of many affected by the collapse of the former top-10 crypto asset.
Crypto hedge fund Three Arrows Capital (3AC), which went bankrupt earlier this year, had a similar story for LUNA’s collapse.
Company CEO Su Zhu said Terra’s collapse was a contributing factor to 3AC’s struggles and eventual liquidation.
“What we didn’t realize was that LUNA was capable of falling to true zero within days and that this would catalyze an industry-wide credit squeeze that would put significant pressure on all of our illiquid positions…
We had different types of trades that we all thought were good, and other people also had those trades. And then somehow everyone was marked, very quickly.
Because LUNA just happened, it was very much a broadcast where people were like, “Okay, are there people who are also leveraged with a long-term Ether-to-Ether bet that will liquidate as the market goes down?” So the whole industry was effectively chasing these positions.”
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