Crypto News

Huge Terra Supporter Pantera Capital Cashed Out 80% Prior to LUNA Crash

Huge Terra Supporter Pantera Capital Cashed Out 80% Prior to LUNA Crash
© Copyright Image: DailyCoin.com

Even though the recent crash of Luna shook up the crypto world, not everybody is in the red during this burdensome period. Pantera Capital, a venture capital company that has backed Terra for a long time prior to the crash, managed to not only cash out 80%, but also make a massive profit. Let’s break down on how Pantera Capital managed to use the crypto crash for their benefit.

How Did the Partnership Start

First of all, Pantera Capital invested in LUNA at the beginning of 2021, when Pantera funded the $25 million rally. Later in summer, Pantera Capital joined the $150 million ecosystem fund of Terra Luna. However, Pantera Capital’s co-chief investment manager Joey Krug emphasized that the LUNA investments made in the summer of 2020, right after Luna token made an entrance into the crypto market, are different from the VC company’s investments made in Terraform Labs. Ultimately, the reasoning behind these investments was rapid progress in developer adoption and a wide ecosystem.

Pantera Says It’s All About Timing

Moreover, Joey Krug explained that the venture capital company started cashing out gradually over the year. ‘The market has been fairly frothy over the year and thus we’d exited the majority of our positions before the UST crash happened’, – says Joey Krug.

Additionally, Paul Veradittakit, a partner at Pantera Capital, has accumulated that since the investment of the funds the VC company has made an enormous profit of about $169 million. The initial deposit was just $1.7 million. 

In contrast, a popular decentralized financial platform Anchor had a total value locked (TVL) of $16 billion. Now, after the stablecoin crash, the TVL sits at just over $150 million. Furthermore, the financial platform had to reduce its APY (annual percentage yield) from 20% to just 4%.

Read more: https://dailycoin.com/huge-terra-supporter-pantera-capital-cashed-out-80-prior-to-luna-crash/

Text source: DailyCoin.com

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

You're just steps away from receiving your reward.

The most complete Crypto News Center.

Search Stories:

Latest top stories