More

    This Crypto Giant Lost 80% Of Its Investment Fund Value in 2022

    Pantera Capital, one of the oldest investment firms in the crypto industry, confirmed the loss of about 80% of its value from investment funds in 2022, with which the firm will begin to restructure its portfolio and focus on altcoins.

    Pantera Capital’s “Liquid Token Fund” lost 80% of its value in 2022, with nearly 23% of losses recorded in November alone following the collapse of the FTX exchange. Previously, as Cointelegraph reported, the platform’s “Early-stage Token Fund” also recorded a loss of 71% in value last year.

    Liquid Token Fund is a strategic fund that invests in 15-25 tokens focused on DeFi and adjacent assets. The fund manages $198 million in assets and 13 tokens in its portfolio.

    According to the news, 3 tokens that the fund holding had the most serious impact in the November period included ATOM, LINK, and OP. While UNI, SOL, ETH recorded the lowest losses. This is because the fund quickly sold the above tokens as soon as the news of FTX broke out, which exited SOL at $20 before it dropped to $10.

    Elsewhere, Pantera Capital said the fund has begun to redirect the majority of its portfolio back to altcoins after a long period focusing on BTC and ETH last spring, which coincided with the financial crisis chain started with the collapse of LUNA-UST, and the bankruptcy of the Celsius lending platform.

    The move came as the crypto industry saw a rally in January 2023 after a severe decline last year. The Bloomberg Galaxy Crypto Index fund, although down 72% in 2022, quickly recovered, up nearly 40% since the beginning of the year, Pantera said.

    Joey Krug, co-chief investment officer at Pantera, said:

    “I think we’re just starting now, recently, to start to rotate back into some alts that we think are going to outperform ETH over the coming cycle.”

    Most Popular

    Related Posts