CoinFund Partner: FTX Investment Has Been Turned Down To Zero.

Key Points:

• The amount of money invested in FTX has been turned into nothing.

• The company did not have any FTT tokens in its possession, but it did have a “very modest trade” in progress when the market crashed.

In an interview, David Pakman, managing partner and head of venture capital at crypto venture capital firm CoinFund, stated that CoinFund was an early investor in FTX and had a FTX investment that has now been written down to zero.

Since the FTX Investment, FTT tokens are not held by the firm. The downfall of FTX is not a “technological failure,” but a “human problem,” and the collapse of the centralized exchange has also heightened interest in decentralized finance (DeFi).

According to Pakman, CoinFund was an early investor to made their FTX investment and held a tiny amount of equity, which has now been written down to zero. The firm did not own any FTT tokens from this FTX investment but had a “very tiny trade” in place when the exchange went down. Pakman joined CoinFund last year after spending 13 years at Venrock, a venture capital firm focused on technology and healthcare.

In August, CoinFund announced a $300 million Web3-focused fund, while regulatory filings last month disclosed plans to raise $250 million for a seed investments fund, demonstrating that the firm has continued to raise money despite the macro climate.

Bear markets can be advantageous to venture capital firms since they result in lower valuations and more appealing entry points for potential investors. Pakman further stated that although corporations should focus on risk management and utilize leverage sparingly, startups should avoid utilizing leverage.

In 2021, venture capital investments in blockchain startups reached a new high of $25.2 billion, fueled by optimistic confidence and funding surges for non-fungible tokens (NFT) and decentralized finance projects. Following a wave of failed enterprises such as hedge fund Three Arrows Capital, lender Celsius Network, and exchange giant FTX, funding is expected to be one-third of what it was in 2021.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Chubbi

Coincu News