Many Terra (LUNA) investors, including the crypto hedge fund Three Arrows Capital, who were caught by the steep fall of the cryptocurrency in early May 2022 have bad stories to tell now.
After the historic crash of the LUNA token in May, efforts were made to get the Terra ecosystem back on track, which led to the creation of an entirely new blockchain codenamed Terra 2.0. This new blockchain gave birth to a new native token LUNA 2.0.
Following the launch, the holders of the relatively valueless old LUNA (LUNC) were airdropped the new token LUNA 2.0, which started trading at around $30 on ByBit after launch. But it has since lost its value massively and trading at $2.46 at the time of writing, according to CoinMarketCap.
This indicates that nothing has changed yet for LUNA investors and it’s not certain if things will get better for the Terra ecosystem anytime soon.
Three Arrows Capital’s $559.6 Million Investment in Locked LUNA Now Worth $670
Obviously, the current bear market has reached everyone in the crypto industry at different levels. It’s made the future of the crypto hedge fund Three Arrows Capital hang in the balance as the firm faces potential insolvency after being liquidated by its lenders.
According to reports, the investment firm is in the process of figuring out how to repay lenders and other counterparties after seeing liquidation totaling at least $400 million. And Three Arrow Capital co-founder Zhu Su’s recent tweet has confirmed that the firm is indeed in distress.
Zhu Su tweeted, “We are in the process of communicating with relevant parties and fully committed to working this out.”
It’s also in the news that the firm shared in the collapse of the Terra (LUNA) ecosystem.
As tweeted by FatMan, a member of the Terra Research forum, Three Arrows Capital (3AC) bought 10.9 million locked LUNA for $559.6 million. The bad news for the firm is that the whopping token is now worth around $670.
FatMan tweeted, “If you’re ever feeling down or angry at yourself about UST/LUNA, don’t beat yourself up too much over it. It was highly sophisticated deception. A lot of brilliant minds fell for it.
“For example, Three Arrows Capital bought 10.9M locked LUNA for $559.6m – it’s now worth $670.45.”