- Such indicators are the worst since the founding of the fund.
- The fund held FTT and SOL tokens in its portfolio
Multicoin Capital Hedge Fund suffered losses of 91.4% in 2022. The annual letter says that such a decline was caused by an unstable market situation and the collapse of the FTX cryptocurrency exchange.
“We managed to avoid the collapse of LUNA and Three Arrows Capital, but unfortunately we were hurt by the disaster with FTX. After a fantastic 2021, our 2022 performance is the worst since we started“, the foundation said in a statement.
Multicoin detailed the financial health of its hedge fund to investors. 10% of all assets were stuck in FTX, and most of the portfolio was occupied by FTT, SOL and SRM tokens – all of which fell sharply in price in November last year. Since October 2017, after the arrival of Kyle Samani, the company launched a hedge fund strategy that invests in liquid tokens. The firm also manages three venture capital funds and has invested in the now-defunct FTX exchange.
However, last year’s decline had little effect on the fund’s overall earnings. From the moment of foundation and until now, the profit is 1,376% excluding commission. In the first month of 2023, the fund earned 100.9%.
After a significant drop last year, the company has drawn conclusions. Now Multicoin will only store assets on the exchange for 48 hours. The company also changed its collateral management practices and connected additional custodians to diversify risks.
Multicoin Capital claims to remain unwavering in its long-term strategy and is not market-driven.
