fbpx
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
Thursday, March 30, 2023
Online Crypto College
CREATE FREE ACCOUNT
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login
No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login
No Result
View All Result
Online Crypto College
No Result
View All Result

Lucky investors exited just before the Terra crash making huge money

May 30, 2022
in Crypto News
Reading Time: 3 mins read
A A
Lucky investors exited just before the Terra crash making huge money
ShareShareShareShareShare

Related articles

Ripple: XRP gains ground over Bitcoin & Ethereum as the asset takes over Korea’s major crypto exchange

Ripple: XRP gains ground over Bitcoin & Ethereum as the asset takes over Korea’s major crypto exchange

March 29, 2023
Space ID purchase shows Avorak AI may add ARB liquidity

Space ID purchase shows Avorak AI may add ARB liquidity

March 29, 2023

  • Pantera Capital’s decision to book profits at 100x gains came from their risk management principles and fund rebalancing.
  • CMCC Global said that their decision to sell LUNA was majorly due to the regulatory issues and concerns around UST stablecoin.

The Terra ecosystem crash earlier this month wiped out over $60 billion of investors’ wealth in total. Several retail and institutional players lost a fortune in this Terra crash, however, some investors were lucky enough to take an exit right before the collapse.

A CNBC report shares some of the companies that made a fortune from Terra. For e.g. Venture Capital giant Pantera Capital has made a fortune and nearly 100x return on its $1.7 million investment in LUNA. Hack VC took an exit last December 2021 when LUNA was around its all-time high above $100.

Similarly, Winklevoss-backed GMCC Global made an exit in Mach 2022, however, didn’t share their exact gains. Speaking to CNBC, Pantera Capital’s co-chief investment officer Joey Krug said they sold 87 percent of their position in LUNA in the time period between Jan 2021-April 2022.

Pantera’s strategy of risk management

It sold another 8 percent in May when it found that UST had lost its dollar peg. Krug said his company “got stuck” with the rest 5 percent. All in all, they netted $171 million in realized gains from their $1.7 million investment. Krug further added that their decision to sell came from simple risk management and fund rebalancing. He added:

For the large portion which we sold over 2021 and part of 2022, it was a really simple risk management reason. It kept becoming a larger and larger part of the fund and so we had to de-risk it since you can’t really run a liquid hedge fund with one position being a super large portion of the fund.

Krug added that when his company noticed UST losing $1 peg, it sold again. “It was really just seeing the peg break by a few cents and pattern matching it to historical currency pegs. So basically, you want to sell it so you don’t end up getting diluted,” explained Krug.

Concerns over Terra’s due diligence

Hong Kong-based venture firm CMCC Global was an early investor in LUNA back in 2018. Speaking to CNBC, CMCC Founder Martin Baumann said that they divested their stake in March because of concerns relating to Terra’s due diligence.

He added that their decision to sell partly came from the tech behind UST. However, the major weightage in their decision was more to do with regulation. Baumann said:

As opposed to asset-backed stablecoins, which are derivatives of existing USD in circulation, UST was effectively increasing the money supply of USD in existence. We figured, while an interesting concept, regulators would not tolerate tampering with money supply of the USD.

CMCC Global sold its LUNA when it was trading at around $100. Hack VC partner Rodney Yesep didn’t speak to CNBC about their gains. However, Yessep recently appeared in an interview wherein he said that they were seed investors in Terra back in the day. “We were no longer holding a position by the time the downturn happened, but a lot of people were, and a lot of people were pretty impacted,” he added.

Related: Another profound dip? Terra 2.0 sinks by more than 70% days after launch


Credit: Source link

ShareTweetSendPinShare
Previous Post

Russia To Regulate Crypto Mining Despite Surge In Electricity Consumption

Next Post

BabyDoge tags 10-day high; Will price continue to rise?

Related Posts

Ripple: XRP gains ground over Bitcoin & Ethereum as the asset takes over Korea’s major crypto exchange

Ripple: XRP gains ground over Bitcoin & Ethereum as the asset takes over Korea’s major crypto exchange

March 29, 2023

Source: Travis Wolfe - Shutterstock Currently, XRP bulls are acting on the 200 weekly moving average (MA), which has served...

Space ID purchase shows Avorak AI may add ARB liquidity

Space ID purchase shows Avorak AI may add ARB liquidity

March 29, 2023

As new cryptos emerge with new solutions that address the existing shortcomings in the cryptocurrency arena, a widespread reception indicates...

WiFi Map Plans to Shake up…

WiFi Map Plans to Shake up…

March 29, 2023

The last few years have seen many companies make forays into the exciting new world of Web3, drawn to its...

Cardano Holds Firm Against Key Resistance at $0.38! ADA Price to Make a Massive Surge Soon

Cardano Holds Firm Against Key Resistance at $0.38! ADA Price to Make a Massive Surge Soon

March 29, 2023

In the last few days, investor interest in Cardano (ADA) price has surged as its competitor’s zkEVM went live on...

Cardano Massive Upswing On Horizon – ADA Price To Surge Above $0.75 In Coming Weeks

Cardano Massive Upswing On Horizon – ADA Price To Surge Above $0.75 In Coming Weeks

March 29, 2023

The seventh largest digital asset by market capitalization, Cardano (ADA), is on the cusp of massive returns if the momentum...

Load More
Next Post
BabyDoge tags 10-day high; Will price continue to rise?

BabyDoge tags 10-day high; Will price continue to rise?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

CEO responds to CFTC’s charges of manipulations

CEO responds to CFTC’s charges of manipulations

March 28, 2023
DOGE Rebounds, LTC Climbs 13% Higher – Market Updates Bitcoin News

DOGE Rebounds, LTC Climbs 13% Higher – Market Updates Bitcoin News

March 23, 2023
Controversial ‘Tiktok Ban Bill’ Sparks Concerns Among Cryptocurrency and Technology Advocates – Bitcoin News

Controversial ‘Tiktok Ban Bill’ Sparks Concerns Among Cryptocurrency and Technology Advocates – Bitcoin News

March 29, 2023
Binance Halts Spot Trading After Matching Engine Glitch

Binance Halts Spot Trading After Matching Engine Glitch

March 24, 2023
South Africa shares crypto regulation update – Cryptopolitan – Cryptopolitan

South Africa shares crypto regulation update – Cryptopolitan – Cryptopolitan

March 26, 2023

About Us

We provide the latest crypto news, trading tools, and up-to-date education to students and traders all over the world.

ENROLL FOR FREE

Latest Crypto Headlines

  • EU Proposes Cap on Anonymous Crypto Transfers
  • Bitcoin price briefly hits $29K despite regulatory crackdowns – Cointelegraph
  • EU Lawmakers Vote to Impose €1,000 Limit on Unidentified Crypto Transactions – Regulation Bitcoin News
  • U.S. and South Korea vying for Do Kwon trial; extradition destination uncertain
  • Binance’s reputation at risk as CFTC allegations raise concerns
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 - OnlineCryptoCollege.com - All rights reserved!

No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login

© 2018 JNews by Jegtheme.

  • bitcoinBitcoin(BTC)$28,340.005.75%
  • ethereumEthereum(ETH)$1,809.545.23%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.10%
  • binancecoinBNB(BNB)$317.222.73%
  • usd-coinUSD Coin(USDC)$1.00-0.19%
  • rippleXRP(XRP)$0.5717.10%
  • cardanoCardano(ADA)$0.38728911.15%
  • staked-etherLido Staked Ether(STETH)$1,806.105.10%
  • dogecoinDogecoin(DOGE)$0.0759735.08%
  • matic-networkPolygon(MATIC)$1.148.68%
  • solanaSolana(SOL)$21.157.08%
  • binance-usdBinance USD(BUSD)$1.000.01%
  • polkadotPolkadot(DOT)$6.246.59%
  • litecoinLitecoin(LTC)$91.796.38%
  • shiba-inuShiba Inu(SHIB)$0.0000114.04%
  • tronTRON(TRX)$0.0646791.17%
  • avalanche-2Avalanche(AVAX)$17.264.84%
  • daiDai(DAI)$1.00-0.25%
  • uniswapUniswap(UNI)$5.995.14%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$28,296.005.32%
  • chainlinkChainlink(LINK)$7.256.69%
  • cosmosCosmos Hub(ATOM)$11.283.51%
  • leo-tokenLEO Token(LEO)$3.400.69%
  • ToncoinToncoin(TON)$2.123.49%
  • ethereum-classicEthereum Classic(ETC)$20.845.37%
  • moneroMonero(XMR)$157.912.53%
  • stellarStellar(XLM)$0.10560413.34%
  • okbOKB(OKB)$43.261.11%
  • Aerarium FiAerarium Fi(AERA)$7.15-13.10%
  • bitcoin-cashBitcoin Cash(BCH)$123.693.32%
  • filecoinFilecoin(FIL)$5.768.02%
  • AptosAptos(APT)$11.666.87%
  • lido-daoLido DAO(LDO)$2.4318.12%
  • true-usdTrueUSD(TUSD)$1.00-0.24%
  • hedera-hashgraphHedera(HBAR)$0.0610223.57%
  • quant-networkQuant(QNT)$121.842.24%
  • crypto-com-chainCronos(CRO)$0.0684353.07%
  • nearNEAR Protocol(NEAR)$1.946.05%
  • vechainVeChain(VET)$0.0231646.61%
  • ArbitrumArbitrum(ARB)$1.2510.36%
  • algorandAlgorand(ALGO)$0.2167969.11%
  • apecoinApeCoin(APE)$4.172.49%
  • internet-computerInternet Computer(ICP)$5.026.25%
  • blockstackStacks(STX)$1.0218.29%
  • the-graphThe Graph(GRT)$0.14743812.86%
  • fantomFantom(FTM)$0.46085314.95%
  • eosEOS(EOS)$1.155.04%
  • the-sandboxThe Sandbox(SAND)$0.647.40%
  • decentralandDecentraland(MANA)$0.607.36%