South Korean blockchain venture capital firm Hashed has revealed that it plans to raise more funds to support GameFi projects after losing more than $3.5 billion to the Terra LUNA crash in May.
Hashed CEO Simon Seojoon Kim told Bloomberg in an interview that he is still bullish on crypto assets and will continue backing promising industry projects despite the massive losses his company incurred two months ago.
Hashed Confirms $3.5B Loss to Luna Crash
Hashed was founded in 2017 by a team of serial entrepreneurs and engineers. Since then, the venture capital firm has supported many renowned blockchain projects, including The Sandbox and Sky Mavis’s play-to-earn game Axie Infinity.
The VC first invested in Terra in 2019, making it one of the earliest investors that backed the project. Hashed increased its exposure to the Terra ecosystem in the years that followed, and in 2021, the venture capital firm participated in TerraForm Labs’ $25 million fundraiser.
According to Kim, the VC purchased 30 million LUNA tokens during Terra’s early days. The company’s LUNA holdings were worth $3.6 billion when the cryptocurrency traded at an all-time high in April 2022. However, Hashed lost everything during the crash, as the CEO noted that the firm held 99% of its tokens through the whole fiasco.
Kim Remains Optimistic
Unlike several firms that went underwater due to exposure to Terra, Hashed has managed to stay afloat and move past the setback.
“In the tech sector, there’s no such thing as a portfolio that guarantees success, and we make our investments with that in mind. We believe in the community’s growth, and that has never changed,” Kim said.
The CEO also revealed that Hashed has already deployed half of the $200 million it raised in December. The firm plans to secure new funding once it uses up the remaining part of its old capital.
The company intends to increase its investment in the GameFi sector. GameFi refers to play-to-earn blockchain games that reward users for playing games. These games also combine blockchain concepts like non-fungible tokens (NFT) and the metaverse to give players an immersive experience. P2E games became popular in 2021, with the likes of Axie Infinity and Gods Unchained (GODS) being the most profitable.
Kim believes the P2E gaming metaverse will become interconnected with the real world as blockchain gaming projects explore ways to let users exchange assets between the virtual and real worlds.