Hashed CEO Simon Seojoon Kim disclosed in a Bloomberg interview that the VC firm lost more than $3 billion from its funding in LUNA after it crashed in May 2022.
Hashed purchased about 30 million LUNA tokens as an early investor in Terraform Labs’ $25 million venture round, performed in January 2021. According to Kim, Hashed held on to the tokens and lost a fortune from the crash.
In accessing the extent of the loss, LUNA’s value peak of $116.11 on April 5 was used, and it revealed that the firm’s token would have been value $3.6 billion. The crash noticed LUNA dropping to a couple cents after the UST stablecoin lost its peg. Consequently, over $40 billion of buyers’ funds was lost in the crash.
Kim, nonetheless, confirmed that his firm would proceed investing in the blockchain sector, regardless of the setback it skilled. He mentioned:
“In the tech sector, there’s no such thing as a portfolio that guarantees success, and we make our investments with that in mind. We believe in the community’s growth, and that has never changed.”
Hashed nonetheless Investing
Kim informed Bloomberg that plans are underway for the firm to lift more funds in the primary half of 2023. It is now trying to make investments more in blockchain-based gaming startups. He is optimistic that the digital recreation world would turn out to be more interconnected with the true financial system, as non-fungible tokens evolve to function a bridge.
Hashed has thus far deployed $320 million in two enterprise funding rounds. Its first fund of $120 million was launched in December of 2020. Blockchain startups together with dYdX, Mythical Games, Republic, Chai, and NFTBank, had been among the many recipients of the funds.
The VC firm launched a $200 million fund in its second spherical. A big portion of the funds was invested into startups elevating seed to Series B funding.
Venture Capitals nonetheless funding crypto startups
During the primary half of 2022, venture capitals invested $17.5 billion in crypto startups, in accordance with information from PitchBook. The first quarter recorded the most important influx of $9.85 billion, whereas $6.76 billion was invested in the second quarter, exhibiting a 31% decline from the earlier quarter. The crypto winter contributed to the declines as many crypto startups had been shedding their valuations.
VC Portfolio Manager at Arca David Nage, nonetheless, argued that the decline in funding could not persist as some VCs are nonetheless investing whereas others are ready for firm valuations to chill down earlier than deploying their funds anyplace from September.
“There’s been this kind of viral dialogue that sometime around September, valuations are gonna come down even more significantly and it’s just gonna be a frenzy,”