Home
News
3.9 billion Korean won, or around $3 million in US dollars, of Uprise’s own money, was apparently included in the loss.
During the Terra-LUNA collapse, the South Korean fintech firm that provides digital asset management and trading services reportedly had over $20 million, or 99 percent of its customer money, liquidated.
Failed bet
Along with an income-generating product, Uprise provided high-net-worth clients with artificial intelligence-based robot advise trading services. It said that the robo adviser presented fewer risks than assets managed by humans.
Firm has invested client money in a short-term position on LUNA Classic (LUNC), AKA LUNA.
According to a Seoul Economic Daily article, after that bet failed, over $20 million in customer money were liquidated, or 99 percent of them.
Major South Korean venture capital firms such as blockchain venture fund Hashed, Kakao Ventures, and KB Investments contributed 46 billion won, or around US$35 million, to the business.
The Uprise startup has received funding from South Korean venture capital firms like Blockchain Venture Fund Hashed, Kakao Ventures, and KB Investments.
The company trusted the artificial-based advisory trading services because they posed less risk than human-led investments, but their timing was poor.
ALSO READ – ENS witnesses 200% increment in new registration
The system shorted LUNC but was forced to liquidate itself as a result of the token’s odd price spikes along the route, which resulted in client losses and the loss of 99 percent of the company’s assets.
The corporation told the local Seoul media, “Due to tremendous unanticipated volatility in the market, there has been damage to client assets, and we hope to conclude the report on our virtual asset business shortly.
The company has ceased its services and will provide further information on compensation shortly.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
