Pantera Capital managed to withdraw its investment from the Terra project
Venture capital firm Pantera Capital cashed in about 80% of its investment in the Terra ecosystem with a large profit before the project collapsed. The firm’s managers reported this.
“Over the last year, the market has come off heavily from fundamental valuations, so we closed most of our position [in Terra] before any of the latter happened. About 80%, pretty gradually,” said Pantera Capital CIO Joey Krug.
Firm partner Paul Veradittakit told the publication that exiting the investment early turned $1.7 million into about $170 million.
The company has invested in the crypto project behind Terraform Labs at least twice. In January 2021, Pantera participated in a $25 million funding round, and in July it joined another one for $150 million.
Already after the interview, Krug clarified that the firm had separate investments in the LUNA token. Pantera acquired the asset in July 2020 after it went public, using trading liquidity rather than venture capital.
“We were able to reduce that position as well, as it grew in size and profitability to diversify the portfolio. Initially, we invested in LUNA after appreciating the progress in developer adoption, use for payments and the Terra ecosystem in a broad sense,” Krug said.
As a reminder, Terra is being offered a bailout with a hardforward.