Due to the crash of market prices this season, leading investment firm Pantera Capital’s early-stage token fund has lost over half of its value this year.
According to a report by The Block, the und which charges a 3% management fee with a 30% performance fee is down 71% through the end of September.
Despite its poor performance this year, the fund has returned over 350% in investment since its launch in 2017.
Meanwhile, Pantera Capital’s CEO Dan Morehead, predicted that cryptocurrencies will be quite popular in the near future because of the benefits they could offer to the financial system. He projected that billions of users will use blockchain technology in the upcoming years, which might raise the price of digital assets.
Also while sharing his takes on the current market conditions, Morehead said the current crypto winter will soon be followed by a bullish run that will see Bitcoin moving north. He also advises investors to diversify their assets and focus on other crypto projects that are important as the dominance of Bitcoin and Ethereum has begun to fade.
Crypto firms record losses as the bearish run linger
The prolonged crypto winter has dealt seriously with the balance sheet of many crypto firms which have seen many of these firms record losses in their quarterly reports.
Meta Platforms Inc, the American social media unicorn, earlier in the week submitted its third-quarter financial results recording a loss of over $3.7 billion. The platform has its plan to focus on what is necessary to maintain a healthy balance sheet.
Europe’s largest digital asset investment group CoinShares reported a loss of over $21 million in the second quarter following the collapse of the Terra ecosystem.
While the company’s Asset Management business continues to generate a healthy profit, its Capital Markets division suffered a loss due to the de-pegging of UST.
American private venture capital firm Andreessen Horowitz recorded a 40% loss in the first half of the year. These losses affected its capacity to fund crypto projects as VC juggernaut only participated in 9 crypto projects in the third quarter.