Hedge Fund Multicoin Capital Down 90% Over The Past 11 Months Because Of FTX’s Fall

Key Points:

• A creditor of Three Arrows Capital named Soldman Gachs claimed to have obtained the Multicoin Capital investor statement for November. The hedge fund has experienced a staggering 90% loss over the last 11 months.
• This comes after the FTX crisis caused Multicoin Capital to lose more than 50% of its cryptocurrency capital in the first two weeks of November.

Soldman Gachs, who claims to be one of the creditors of Three Arrows Capital, stated that he received Multicoin Capital’s November investor statement. In the past 11 months, the hedge fund has fallen by as much as 90%.

This comes after Multicoin Capital issued a letter to investors in November, disclosing the situation of the fund and its views and opinions on the market: the collapse of FTX and the resulting decline have caused Multicoin’s asset size to drop by 55% within the month.

Usually, Multicoin trades on three exchanges: FTX, Coinbase and Binance, and now, in addition to assets on FTX, 100% of assets are on Coinbase or in self-custodial wallets. Multicoin still holds its ground and still believes in Solana, the network has one of the most active developer communities and based on Multicoin’s experience in 2018 and 2020, it would be unwise to sell assets during a short-term crisis if the core thesis is not damaged.

Solana is the ecosystem that suffered the most after the collapse of the Sam Bankman-Fried empire that includes FTX and its sister company Alameda Research.

FTX is still beset by legal issues from many sides. As Coincu reported, FTX customers filed a class-action lawsuit against the exchange and its former executives (including Bankman-Fried), asking the court to declare that the assets digital assets held by the company belong to the customer.

Just as the collapse of Lehman Brothers did not kill the banking industry and Enron did not kill energy companies, FTX will not be the end of the crypto industry. Expect new sprouts to emerge next year as leverage is cleared from the system.

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

Harold

Coincu News