The Pantera Liquid Token Fund suffered a big drawdown in 2022, along with an enormous November deficit notably after the FTX crash.
In response to newest experiences, Pantera Capital misplaced 80% of its liquid token fund in 2022 amid the acute crypto market downturn. The company moreover suffered a 23% deficit sustained in November alone, following FTX’s dramatic collapse.
Putting the Pantera 2022 liquid token fund loss in perspective, the Bloomberg Galaxy Crypto Index was down roughly 27% for the same yr. However, a January investor title uploaded to YouTube six days up to now revealed that Pantera’s fund had rebounded partly this month. In response to the investor title, the world’s largest crypto hedge fund regained 47% throughout the first month of the model new yr.
On the time of the choice, the Pantera Liquid Token Fund, a multi-strategy vehicle, had $198 million in property beneath administration (AUM). In addition to, the liquid token fund, which usually invests in 15-25 liquid tokens at a time, moreover had 13 tokens throughout the portfolio.
In response to Pantera’s website online, the company’s liquid token is “predominantly pushed by a discretionary method focused on decentralized finance and adjoining property.”
Notable Pantera Fund 2022 Happenings
On the investor title, Joey Krug, co-chief funding officer at Pantera, recognized some notable developments that occurred closing spring. In response to Krug, the fund began to transition lots of the portfolio away from altcoins and into Ether (ETH). The timing of this progress matched the collapse of Terra’s USDT stablecoin and its sister coin, Luna. These collapses further triggered the collapse of crypto lending platform Celsius Group.
No matter Pantera’s switch to Ether mid-last yr, the crypto VC simply currently reallocated funds once more to completely different altcoins in anticipation of an alt season. As Krug outlined:
“I imagine we’re merely starting now, simply currently, to start to rotate once more into some alts that we count on are going to outperform ETH over the approaching cycle.”
Pantera stays optimistic in regards to the potential of altcoins as a result of the market reveals indicators of a restoration. However, observers opine that it’s nonetheless too early to find out whether or not or not an alt season has begun or is in full swing.
Pantera’s selection to point out its capital once more to altcoins shows the rising curiosity and recognition in decentralized finance (DeFi) initiatives. Lots of these initiatives rely on altcoins as a facilitator, and Pantera reckons these tokens might doubtlessly disrupt typical finance. Which implies altcoins might in the long run reshape the financial panorama.
Pantera’s prime three performing altcoins for closing November had been Cosmos (ATOM), Chainlink (LINK), and Optimism (OP). Conversely, Uniswap (UNI), Solana (SOL), and ETH occupied the underside slots.
The prospect of an altcoin season stays debatable because the model new yr continues to unwind. However, throughout the earlier bull run of 2020-2021, various altcoins observed explosive improvement, with some prices surging as a lot as 400 situations.
Within the meantime, no matter a modern correction, Bitcoin (BTC) continues to experience upward momentum, with its worth remaining 1.1% elevated to this point week. In response to the Bitcoin Dominance (BTCD) index, which presently stands at 44.4, the primary crypto stays dominant.
Tolu is a cryptocurrency and blockchain fanatic based in Lagos. He likes to demystify crypto tales to the bare fundamentals so that anyone wherever can understand with out an extreme quantity of background information.
When he’s not neck-deep in crypto tales, Tolu enjoys music, likes to sing and is an avid movie lover.