Pantera loses 80% of crypto fund worth in 2022, “pivot” on altcoin

Pantera Capital, 1 of the oldest investment companies in the cryptocurrency sector, confirms the reduction of all around 80% of its worth from crypto investment money in 2022, with which the fund will start off to restructure its portfolio and emphasis on altcoins .

Pantera Capital’s “Liquid Token Fund” misplaced 80% of its worth in 2022, with practically 23% of losses recorded in November alone following the collapse of the FTX exchange. Previously, as reported by Coinlive, The platform’s “First Phase Token Fund” also misplaced 71% of its worth in the final 12 months.

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

According to media reviews, the prime three fund holdings that produced the largest effect in the November time period incorporated ATOM, Hyperlink And OPERATION. when UNI, SOL, ETH posted the lowest reduction. This is due to the fact the fund “quickly sold” the aforementioned tokens as information of FTX broke, in which exit SOL to USD twenty prior to the coin dropped to USD ten.

Elsewhere, Pantera Capital stated the fund has begun redirecting the vast majority of its portfolio to altcoins following a extended time period of “hiding” in BTC and ETH because final spring, which coincided with the fiscal crisis. LUNA-UST collapseas far as the bankruptcy of the Celsius lending platform.

The move comes as the cryptocurrency business noticed a rally in January 2023 following a significant decline final 12 months. The proof is that the Bloomberg Galaxy Crypto Index fund, though down 72% in 2022, has recovered rapidly, up practically forty% because the commence of the 12 months, Pantera stated.

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

“I think now that we’re just getting started, the fund has recently come back with some altcoins that we think will outperform ETH in the next cycle.”

In our January Blockchain Letter, we examine the highlights of 2022 and our outlook for the 12 months ahead in the cryptocurrency business.

Check it right here: https://t.co/4DM63wiKoV pic.twitter.com/rY8CYUQj1F

— Pantera Capital (pantera.blockchain) (@PanteraCapital) January 23, 2023

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