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The Pantera Liquid Token Fund suffered a large drawdown in 2022, together with a big November deficit particularly after the FTX crash.
In keeping with latest studies, Pantera Capital misplaced 80% of its liquid token fund in 2022 amid the extreme crypto market downturn. The corporate additionally suffered a 23% deficit sustained in November alone, following FTX’s dramatic collapse.
Placing the Pantera 2022 liquid token fund loss in perspective, the Bloomberg Galaxy Crypto Index was down roughly 27% for a similar yr. Nevertheless, a January investor name uploaded to YouTube six days in the past revealed that Pantera’s fund had rebounded partly this month. In keeping with the investor name, the world’s largest crypto hedge fund regained 47% within the first month of the brand new yr.
On the time of the decision, the Pantera Liquid Token Fund, a multi-strategy car, had $198 million in belongings underneath administration (AUM). As well as, the liquid token fund, which usually invests in 15-25 liquid tokens at a time, additionally had 13 tokens within the portfolio.
In keeping with Pantera’s web site, the agency’s liquid token is “predominantly pushed by a discretionary technique targeted on decentralized finance and adjoining belongings.”
Notable Pantera Fund 2022 Happenings
On the investor name, Joey Krug, co-chief funding officer at Pantera, identified some notable developments that occurred final spring. In keeping with Krug, the fund started to transition many of the portfolio away from altcoins and into Ether (ETH). The timing of this growth matched the collapse of Terra’s USDT stablecoin and its sister coin, Luna. These collapses additional triggered the collapse of crypto lending platform Celsius Community.
Regardless of Pantera’s transfer to Ether mid-last yr, the crypto VC not too long ago reallocated funds again to different altcoins in anticipation of an alt season. As Krug defined:
“I believe we’re simply beginning now, not too long ago, to begin to rotate again into some alts that we expect are going to outperform ETH over the approaching cycle.”
Pantera stays optimistic in regards to the potential of altcoins because the market exhibits indicators of a restoration. Nevertheless, observers opine that it’s nonetheless too early to establish whether or not an alt season has begun or is in full swing.
Pantera’s resolution to show its capital again to altcoins displays the growing curiosity and recognition in decentralized finance (DeFi) initiatives. Many of those initiatives depend on altcoins as a facilitator, and Pantera reckons these tokens may probably disrupt conventional finance. Which means that altcoins may in the end reshape the monetary panorama.
Pantera’s prime three performing altcoins for final November had been Cosmos (ATOM), Chainlink (LINK), and Optimism (OP). Conversely, Uniswap (UNI), Solana (SOL), and ETH occupied the underside slots.
Alt Season?
The prospect of an altcoin season stays debatable as the brand new yr continues to unwind. Nevertheless, within the earlier bull run of 2020-2021, a number of altcoins noticed explosive development, with some costs surging as much as 400 occasions.
In the meantime, regardless of a latest correction, Bitcoin (BTC) continues to expertise upward momentum, with its value remaining 1.1% increased prior to now week. In keeping with the Bitcoin Dominance (BTCD) index, which at present stands at 44.4, the main crypto stays dominant.
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Tolu is a cryptocurrency and blockchain fanatic primarily based in Lagos. He likes to demystify crypto tales to the naked fundamentals in order that anybody wherever can perceive with out an excessive amount of background data.
When he isn’t neck-deep in crypto tales, Tolu enjoys music, likes to sing and is an avid film lover.
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