{"id":61823,"date":"2022-05-22T15:49:58","date_gmt":"2022-05-22T12:49:58","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=61823"},"modified":"2025-09-05T14:25:26","modified_gmt":"2025-09-05T11:25:26","slug":"avalanche-founder-reveals-losses-from-terra-investment","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/avalanche-founder-reveals-losses-from-terra-investment\/","title":{"rendered":"Avalanche founder reveals losses from Terra investment"},"content":{"rendered":"<p>The Terra ecosystem collapse cost the Avalanche Foundation, a nonprofit organization, about $60 million, according to Emin G\u00fcn Sirer, founder of Avalanche and head of Ava Labs, in an interview with Forbes.<\/p>\n<figure class=\\\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\\\">\n<div class=\\\"wp-block-embed__wrapper\\\">\n<iframe loading=\\\"lazy\\\" title=\\\"LUNA\/UST\u2019s Collapse Was As Damaging For Crypto As Mt. Gox, Says Blockchain Founder | Forbes\\\" width=\\\"500\\\" height=\\\"281\\\" src=\\\"https:\/\/www.youtube.com\/embed\/_j4Uunxxem4?feature=oembed\\\" frameborder=\\\"0\\\" allow=\\\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\\\" referrerpolicy=\\\"strict-origin-when-cross-origin\\\" allowfullscreen><\/iframe>\n<\/div>\n<\/figure>\n<p>According to Sirer, the Avalanche Foundation worked closely with Terraform Labs. He explained that the partnership between the two companies was aimed at increasing interoperability between the two blockchains.<\/p>\n<p>As part of the collaboration between Luna Foundation Guard (LFG) and Terraform Labs (TFL) <a href=\"https:\/\/u1f987.com\/en\/news\/luna-foundation-guard-and-terraform-labs-invest-200-million-in-avax\">invested<\/a> in AVAX. The former acquired tokens in an over-the-counter deal for UST, while the latter swapped them for the cryptocurrency LUNA. The assets were intended to be used to stabilise the TerraUSD price.<\/p>\n<p>The head of Ava Labs noted that the Avalanche Foundation also invested about $60 million in the Terra ecosystem at the current AVAX price.\u00a0<\/p>\n<p>Sirer also said that TFL and LFG continue to hold AVAX:<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u00abWe spoke to them; they did not dump AVAX even in difficult moments, so at present this is the most valuable asset they own. [\u2026] A significant portion of the tokens is effectively locked, so they cannot move them\u00bb.<\/p>\n<\/blockquote>\n<p>Earlier, at Avalanche Foundation <a href=\"https:\/\/u1f987.com\/en\/news\/avalanche-team-clarifies-the-volume-of-terra-linked-avax-reserves\">they clarified<\/a> the amount of Terra-owned AVAX tokens:<\/p>\n<ul class=\\\"wp-block-list\\\">\n<li>TFL bought 1.09 million AVAX with a one-year lock-up period;<\/li>\n<li>LFG bought 1.97 million AVAX for use in a reserve fund;<\/li>\n<li>these amounts represent 0.5% and 0.9% of weekly trading volume, respectively.<\/li>\n<\/ul>\n<p>The founder of Avalanche stressed that he does not regret investing in Terra. In his view, the partnership with the project could have brought Ava Labs substantial profits.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u00abWe knew there were risks and thought: \u201cThese guys understand how to run the project; their team is efficient and talented\u201d\u00bb, he explained.<\/p>\n<\/blockquote>\n<p>Sirer believes that Terra\u2019s collapse has more serious consequences for the cryptocurrency industry than the The DAO attack. He compared the incident to the Mt. Gox exchange hack in 2014. The Avalanche founder explained that the similarity lies in the negative impact of these events on the sector.\u00a0<\/p>\n<p>Forbes described the collapse of LUNA and UST as the <a href=\"https:\/\/u1f987.com\/en\/news\/forbes-dubbed-the-ust-and-luna-collapse-the-crypto-markets-fifth-reboot\">\u00abfifth reboot\u00bb of the crypto market<\/a>.<\/p>\n<p>Read ForkLog\u2019s bitcoin news on our <a href=\\\"\/\/telegram.me\/forklog\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Terra ecosystem collapse cost the Avalanche Foundation, a nonprofit, about $60 million, according to Emin G\u00fcn Sirer, founder of Avalanche and head of Ava Labs.<\/p>\n","protected":false},"author":1,"featured_media":61824,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1413,852],"class_list":["post-61823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-avalanche-avax","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=61823"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61823\/revisions"}],"predecessor-version":[{"id":61825,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61823\/revisions\/61825"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/61824"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=61823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=61823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=61823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}