Cryptocurrency investment company Multicoin Capital’s hedge fund attracted attention with its massive depreciation in 2022.
Details of the annual investor letter Multicoin Capital sent to its clients revealed the firm’s financial position. In the letter seen by CoinDesk, Multicoin Capital’s hedge fund 91.4% depreciation in 2022 drew attention. The company, the crypto money exchange as the reason for the loss of value FTXHe suggested the effect of the collapse of .
The company, which operates three different venture capital funds in total, 10%He connected his . to the bankrupt FTX and both FTX Token (FTT) as well as Left (LEFT), Serum (SRM) It was severely damaged by the fall of exchange-linked tokens such as:
While the fund successfully weathered the devastating effects of LUNA and Three Arrows Capital on the industry earlier in the year, we could not avoid the contagious devastation of FTX that spread across the market. For these reasons, it received the worst damage since our establishment in 2022.
More than 2,000% profit in the big picture
On the other hand, the big picture for the company, which has been carrying out its hedge fund strategy since October 2017, is not as dark as one might think. Multicoin’s hedge fund in the period from its foundation to 2022 despite the big drop 1,376% increase made its investors happy. In addition, compensation for the loss in 2022 took place during the market recovery that has been experienced in the last few months.
Multicoin, the fund will be launched in January 2023. 100.9% increase in value and the return of the fund from its establishment to January 2023 2.866%He stated that he went to
In addition, in the letter that is the subject of the news, to reduce counterparty risks It was also mentioned that new steps will be taken. In line with these decisions, only one exchange at a time 48 hours The company, which states that it will hold trading assets worth of its value, will also start working with additional custodians to diversify its custody risk.