Early Terra (LUNA) Investor Reveals $3,600,000,000 Loss After Historic Crypto Collapse: Report
A crypto investor who got into Terra (LUNA) early is reporting staggering losses in the billions.
According to a new report from Bloomberg, Simon Seojoon Kim, a South Korean crypto-investor and early LUNA adopter, reveals $3.6 billion in losses after the Terra ecosystem disintegrated 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), essentially lost 100% of its value in just a few days.
According to Kim, he has not lost faith in the digital resource space despite the heavy losses he has incurred 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 to LUNA’s collapse.
The firm’s CEO Su Zhu said the implosion of Terra was a contributing factor to 3AC’s struggles and eventual liquidation.
“What we didn’t realize was that LUNA was capable of falling to effective zero in a matter of days, and that this would catalyze an industry credit crunch that would put significant pressure on all of our illiquid positions…
We had different types of trades that we all thought were good, and others had these too. And then they all sort of got super branded, super fast.
Because LUNA just happened, there was a lot of contagion where people said, “OK, are there people who are also leveraged with long stakes Ether versus Ether that will be liquidated when the market goes down?” So the whole industry was effectively hunting these positions.”
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