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Pantera Capital is reported to have lost 80 per cent of its cash chip fund in 2022 due to the severe bear market in the cryptocurrency industry. Moreover, the company had a 23% deficit in November alone due to the catastrophic collapse of ftx.
The loss to the 2022 Pantera Liquid Token Fund is relatively small relative to the lower value observed by the Bloomberg Galaxy Cryptographic Index over the same period.
On the other hand, Pantera's fund had somewhat recovered by the beginning of this month, as was disclosed (1) in a January investor call released to YouTube six days ago.
By January, the biggest cryptocurrency hedge fund in the world would have recovered 47% of its losses. This information was provided via an investor conference call.
At the time of the call, the multi-strategy vehicle known as the Pantera Liquid Token Fund had a total of $198 million in assets under management from its team (ASG).
In addition, thirteen tokens have been included in the liquid token fund portfolio, which generally invests between 15 and 25 different liquid tokens at any one time.
The liquid coin that Pantera uses is "predominantly driven by a flexible strategy focusing on decentralized finance and related assets," as the company's website states (2).
Look back At Pantera Investments in 2022
During the investor call, Joey Krug, also the co-chief investment officer at Pantera, discussed many significant events during the spring of last year. According to Krug, the fund has begun to move a significant part of its holdings away from other crypto currencies and to aether (eth).
This new event coincided with the devaluation of the stablecoin and the moon of terra, which was the sister room of terra. These failures contributed to the eventual failure of the Celsius cryptocurrency lending network.
Although the pantera concentrated on aether in the middle of the preceding year, the cryptocurrency VC company has recently transferred assets to other altcoins in preparation for a replacement season.
The outlook for alternative crypto currencies continues to be bullish despite signs of market recovery. However, it is still much too early to know if another season has begun or is already booming.
The increasing interest and acceptance of decentralised finance (challenge) initiatives is reflected in Pantera's plan to return a portion of its funds to other cryptocurrencies.
Pantera believes that many of these companies, who rely on other cryptocurrencies as their enablers, have the potential to disrupt established forms of financing. This implies that alternative cryptocurrencies have the potential to change the current state of the economy over time.
Cosmos (ATOM), Chainlink (LINK), and Optimism were Pantera's top 3 alternative crypto currencies for November last year (OP). In addition, underground positions were taken by Uniswap (UNI), Solana (SOL), and Ethereum.
While the first months of the new year are drawing to a close, the possibility of a spare parts season is still under consideration. However, some alternative crypto currencies have skyrocketed over the last bullish period in 2020-21, with some values climbing up to 400 times.
Bitcoin (BTC) continues to see an increasing trend over this period, with its price remaining 1.1% higher than the previous week. Although a recent decline has taken place. The upper cryptocurrency continues to hold a strong position, as shown by the Bitcoin Dominance Index (BTCD), which currently stands at 44.4.
