It seems that CoinShare has lost a chunk of its revenue due to Terra (LUNA) collapse.
CoinShare, a European leader in digital asset management established in 2017, has looked through its second quarter interim results, which were significantly lower compared to previous years.
According to the overview shared on August 2nd, the total revenue has declined by around 5 million pounds. When comparing the 2021 first quarter’s net income the loss is even more significant. In 2021 the company secured 26,6 million pounds net income, whereas in the Q2 of 2022 it reached only 0,1 million pounds.
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Chief Executive Officer, Jean-Marie Mognetti when talking about the reasoning for such losses, highlighted the company's connection to Terra (LUNA), now known as Terra Classic (LUNAC):
While our Asset Management business continued to generate solid profit, the Capital Markets business experienced a one-off loss of £17.7 million following the de-pegging of US Terra. The financial impact of this episode, despite being relatively small when compared to the losses incurred by other players in our industry, has, of course, had a material impact on our quarter.
During the Terra (LUNA) collapse, Coinshare didn’t have direct exposure to this public blockchain protocol. However, the company was holding an order book linked to TerraUSD stablecoin.
Therefore, when the company took to Twitter to highlight the most important elements of the second quarter overview, it emphasized that moving forward, the goal will be to “ensure greater transparency”.
The CEO finished her part of the report on a high note, saying:
CoinShares has sufficient resources to navigate the markets during this volatile time thanks to an effective strategy, a robust balance sheet, and a seasoned, world-class team. The breadth and depth of our experience in digital assets ensure that we can take a long-term view as we continue to build the future of investing.
In May, Terra (LUNA) started experiencing a significant crash. It is worth mentioning that Do Kwan attempted to save the token, however, his efforts were unsuccessful.
