Earlier this month, major cryptocurrency Terra LUNA/USD collapsed and lost over 97% of its value as its native stablecoin TerraUSD UST/USD fell to under $0.30 — with nearly $24 billion of capital evaporating from the two tokens' market values, all within 24 hours.
What Happened: While many have lost fortunes with the spectacular market crash that some suggest was caused by a faulty protocol design, others made fortunes from Terra's rise and sold before the ecosystem saw its demise.
According to a Sunday CNBC report, venture capital firm Pantera Capital tells CNBC it earned a 100-fold return on its $1.7 million investment in Terra, Hack VC. Furthermore, Hack VC and CMCC Global have not shared their gains, but the former closed its position in December while the latter in March — suggesting that both saw hefty returns on their investments.
See Also: How To Earn Free Crypto
CNBC describes the Terra ecosystem as a "scheme" that "relied largely on faith and the promise of future returns, plus a complex set of code, with very little hard cash to back up the whole arrangement."
As pointed out in the article, at their highest Terra and TerraUSD had a combined market cap of almost $60 billion — a lot of money that has essentially disappeared mostly in a single day.
On Saturday, Terra developers launched a new token, Luna 2.0, which is down over 73% since it began trading, and is currently priced at $5.65.
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