Pantera Capital cashed out 80% of investment early before the UST crash

Pantera Capital, one of the backers of Terraform Labs, withdrew nearly 80% of its investment in Terra (LUNA) before TerraUSD (UST) collapsed last week.

Joey Krug, Co-Chief Investment Officer of Pantera Capital, said:

“The market has been fairly frothy over the last year and thus we’d exited the majority of our position before any of this happened. Roughly 80% over the last year, fairly gradually over time.”

Pantera Capital-backed Terraform Labs at least twice, first with a $25 million round in January 2021 and again with a $150 million ecosystem fund round in July 2021. Following the publication of this article, Krug noted that Pantera’s LUNA investments were distinct from its Terraform Labs investments and occurred in the summer of 2020, following LUNA’s public offering.

Pantera Capital was fortunate enough to make a significant profit despite the fact that he was one of many “sharks” that invested in faltering Terraform. Pantera Capital partner Paul Veradittakit stated that the company grew from $1.7 million to $ 170 million.

Algorithmic stablecoin UST fell sharply last week to less than 10 cents, well away from its $1 return. Meanwhile, LUNA is currently trading at 1% from over $80 at the start of this month, dividing the price of LUNA hundreds of millions of times.

When the UST lost its peg last week, Pantera even “preserved” the remaining 20%. Krug said:

“We got out of 2/3 of that at an average price of $25.6, the remainder of that was staked via LUNAX and so unable to be sold.” LunaX is a liquid staking token by Stader Labs.

Despite this, Mr. Veradittakit is being criticized for calling for investment in Anchor’s decentralized finance platform on Terra, which also lost almost all of its customers’ funds due to the UST crash. According to data from DeFi Llama, Anchor’s Total Value Locked (TVL) has fallen from more than $16 billion before the UST collapse to more than $150 million.

In a blog published in April 2021, Veradittakit referred to Anchor as an “18-20% high fixed rate” financial savings account. A fixed revenue, very low danger, higher yield money instrument like Anchor is genuinely astounding.

Another investment fund in Terra, Galaxy Digital, also claimed to have “taken profits” before the LUNA-UST model collapsed, while the Three Arrows Capital fund even sold to Luna Foundation Guard up to $1.5 billion in Bitcoin (BTC) only 2 days before UST de-peg. Luna Foundation Guard then spent all its $3 billion Bitcoin reserves to “save the UST price,” but it still failed.

Three Arrows Capital CEO Zhu Su later had to apologize to the community, and CEO Mike Novogratz of Galaxy Digital said he would keep the LUNA tattoo as a “reminder” lesson. The failure of UST is a domino that harms the entire Terra ecosystem and the entire crypto industry.

So Do Kwon, CEO of Terraform Labs, created all of the energy in the hopes of saving the day. By creating a separate blockchain, Do Kwon advanced Terra’s fork strategy. Do Kwon’s “rebuild” idea Earth began voting late last night and is expected to hard fork the blockchain before dawn on May 27. Voting will last seven days and could end fast if the required number of votes to surpass 188 million is obtained.

Yesterday, Korea re-established the “Death” money process force to investigate the Terra situation. A foremost law company in the land of kimchi is also getting ready the last procedures for suing the CEO of Terraform Labs.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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