Delphi Digital, a research firm and boutique investor, said in a blog post that it always had concerns about the structure of UST and LUNA, but believed that the sizable reserves in the Luna Foundation Guard, a nonprofit that supports the Terra network, would prevent the unthinkable from happening.
The firm wrote that in the first quarter of 2021, Delphi Ventures Master Fund purchased a small amount of LUNA, worth 0.5% of its net asset value (NAV) at the time. That position grew as LUNA’s value increased and the fund increased its holdings, including a $10 million investment in the LFG’s funding round in February. That investment is now worthless.
While Delphi said that it didn’t sell any LUNA, it’s now sitting on “a large unrealized loss.”
One of Terra’s other prominent backers is Hashed, an early-stage venture fund based in Seoul, South Korea. The company invested in TerraForm Labs’ $25 million venture round in 2021, according to Crunchbase data.
All in all, Hashed’s losses amount to over $3.5 billion using pricing data from early April.
Local media in South Korea report that more than 200,000 investors in the country hold Terra-related tokens.