Research firm Delphi Digital admitted in a blog post that it had always worried about the UST and LUNA structure, but believed that Luna Foundation Guard’s substantial reserve assets would prevent the unthinkable.
“We always knew something like this was possible, and we tried to emphasize the risks to such a system in our research and public comments, but the fact is that we miscalculated the risk of a ‘death spiral’ ourselves. We have suffered a bit for it over the past week, and we deserve it. The criticism is fair and we accept it,” the company wrote.
The company said Delphi Ventures Master Fund acquired a small amount of LUNA for 0.5% of net asset value in the first quarter of 2021. The position increased as Luna grew. In February 2022, the firm invested $10 million in LFG.
Now, with nothing to sell, Delphi Digital is forced to report a large unrealized loss.
For its part, South Korea’s Hashed Venture Fund participated in a $25 million funding round for Terra in 2021.
The company also focused on stepping in 27 million Luna in Columbus 3, 9.7 million Luna in Columbus 4 and 13.2 million Luna in Columbus 5. The total loss is estimated at $3.5 billion.