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Why Pantera Capital Withdrew 80% of Its LUNA Investment before the UST Fall

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VOC, Voice of Crypto, LUNA

Highlights:

  • Pantera Capital did not experience significant losses due to TerraUSD crash last week.
  • UST collapsed, and Pantera exited all LUNA stock from its last 20% investment.

Following Terra’s massive crash and collapse (LUNA), Pantera Capital, a high-profile backer of Terraform Labs, acquired a vast profit despite being one of the numerous “sharks” that invested in Terraform. The profit came after cashed out 80% of its investment in Terra (LUNA). 

In the report to the block, Joey Krug, the co-Chief Investment Officer, stated that “the market has been fairly volatile 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, reasonably gradually over time.”

Pantera Capital partner Paul Veradittakit mentioned that the company grew in size from $1.7 million to $170 million. At the same time, other investment firms that backed LUNA and Pantera capital are wobbling at a loss since the LUNA collapse from the UST crash.

Pantera Capital initially invested in Terraform Labs twice, withdrawing its $25 million investment in January 2021 and joining its $150 million ecosystem fund in July 202. In the article, Krug made it known that Pantera’s LUNA investment is different from the investment made. The separation of the investments took place in the summer of 2020, following LUNA’s market debut. 

Last week, the UST data Stablecoin broke down to a low level of 10 cents, lower than the price tag of $1.After the breakdown, LUNA is currently selling at a cent far from its $80 trading rate earlier this month. As Pantera learned of the UST’s loss last week, It quickly sold all of its remaining LUNA stock from its last 20% investment.

Nevertheless, Krug stated  “we came out 23 with an average of $25.6, which reminds us that the capacity is stacked in LUNA and cannot be sold.

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However, as the UST crashed, it impaired the cryptocurrency market. Galaxy Digital, an investment fund in Terra, claimed to have experienced a massive profit before the collapse of the LUNA-UST model.

 

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