{"id":12540,"date":"2022-06-01T02:43:41","date_gmt":"2022-06-01T02:43:41","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/coinshares-ceo-says-usts-failure-cost-the-firm-21m\/"},"modified":"2022-06-01T02:43:41","modified_gmt":"2022-06-01T02:43:41","slug":"coinshares-ceo-says-usts-failure-cost-the-firm-21m","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/coinshares-ceo-says-usts-failure-cost-the-firm-21m\/","title":{"rendered":"CoinShares CEO says UST’s failure cost the firm $21M"},"content":{"rendered":"

(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum & Crypto News )<\/b>
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DeFi exposure related to Terra\u2019s stablecoin UST saw CoinShares, Europe\u2019s largest digital asset firm with billions of assets under management, lose more than $21 million, the firm\u2019s CEO Jean-Marie Mognetti revealed on Tuesday.<\/p>\n

The CoinShares chief\u2019s comment on the loss was part of his investor relations message to the company\u2019s clients published in the 2021\u00a0Financial Annual Report<\/u><\/a>.<\/p>\n

While the loss will be reflected in the company\u2019s Q2 earnings report, Mognetti said he would wait until then or the earnings call scheduled for August to give an update.<\/p>\n

CoinShares had no direct exposure to UST\u00a0<\/h2>\n

According to the CoinShares co-founder, although the firm\u2019s trading activities mean it was not directly exposed to LUNA\u2019s price collapse, it is active in the DeFi space. Thus, when the implosion occurred, it had been exposed to UST via a book it was running.<\/p>\n

\u201cFollowing the events of the last few weeks, we have booked an exceptional loss from our DeFi activities of \u00a317m on liquidating our holding in UST<\/em>,\u201d he explained.<\/p>\n

That\u2019s about $21.4 million lost, but the CoinShares CEO is upbeat that it won\u2019t impact its activities going forward.<\/p>\n

\u201cWhile this obviously impacts on the Group\u2019s performance for Q2, this loss has not had any impact on any of our additional Capital Markets activities, nor does it in any way impact upon the hedging and collateralisation of any of the Groups ETPs.<\/em>\u201d<\/p>\n

It\u2019s a \u2018battle scar\u2019<\/h2>\n

Despite the loss, CoinShares looks at it (LUNA\u2019s collapse and the loss) as a humbling experience and \u201cbattle scar\u201d that team has learnt from and won\u2019t forget.\u00a0<\/p>\n

The events also gives them the morale focus on providing \u201cthe premier investment technology for the digital asset sector<\/em>.\u201d<\/p>\n

Mognetti \u00a0also says \u00a0that the company had an \u201cexceptional\u201d 2021, with \u00a0fiscal year income up more than 500% year-on-year to over \u00a0\u00a3113 million ($142.4 million). However, shareholders might not see the value due to the global macro environment and the company stock\u2019s lack of liquidity.<\/p>\n

Terra\u2019s collapse has resulted in the creation of a forked chain LUNA 2.0. The old chain is called Luna Classic (LUNC).<\/p>\n<\/p><\/div>\n

Source link <\/a>
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(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum & Crypto News ) DeFi exposure related to Terra\u2019s stablecoin UST saw CoinShares, Europe\u2019s largest digital asset firm with billions of assets under management, lose more than $21 million, the firm\u2019s CEO Jean-Marie Mognetti revealed on Tuesday. The CoinShares chief\u2019s comment on the loss was part of […]<\/p>\n","protected":false},"author":13,"featured_media":12541,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/12540"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=12540"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/12540\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/12541"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=12540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=12540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=12540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}