Pantera Capital reportedly suffered an 80 percent loss in its liquid token fund in 2022 due to a severe bear market in the cryptocurrency industry. Additionally, the business suffered a 23% deficit in November alone as a direct result of FTX’s disastrous collapse.
The loss by the Pantera 2022 Liquid Token Fund is relatively small compared to the decline in value seen by the Bloomberg Galaxy Crypto Index over the same period.
On the other hand, Pantera’s finances recovered somewhat earlier this month, revealed (1) in a January investor call posted on YouTube six days ago.
In January, the world’s largest cryptocurrency hedge fund reportedly recovered 47% of its losses. The information was disclosed on a call with investors.
At the time of the call, a multi-strategy vehicle called the Pantera Liquid Token Fund had a total of $198 million in assets under management (AUM).
Additionally, thirteen tokens are included in the Liquid Token Fund’s portfolio, which typically invests in 15 to 25 different Liquid Tokens at any given time.
The liquid currency used by Pantera is “mainly driven by a flexible strategy focused on diversified funds and related assets,” according to the company’s website (2)
A Look Back at Pantera Investments in 2022
During the investor call, Joey Krug, Pantera’s co-chief investment officer, discussed several notable events from last spring. According to Crook, the fund has begun moving a significant portion of its holdings away from other cryptocurrencies and toward Ether (ETH).
This new event coincided with the devaluation of Terra’s USDT stablecoin and Terra’s sister coin, Luna. These failures eventually led to the failure of the cryptocurrency lending platform Celsius Network.
While Pantera shifted its focus to Ether in the middle of last year, the cryptocurrency venture capital firm has recently shifted its holdings to other altcoins in preparation for an alt season.
Although the market is showing signs of recovery, Pantera continues to have a positive outlook on the prospects of alternative cryptocurrencies. However, it is still too early to determine whether a replacement season has begun or is already in full swing.
The growing interest and acceptance of decentralized finance (DeFi) initiatives is reflected in Pantera’s plan to return some of its funds to alternative cryptocurrencies.
Pantera believes that many of these companies that rely on alternative crypto-currencies as a means of facilitation have the potential to disrupt established forms of financing. This indicates that alternative cryptocurrencies have the potential to eventually change the current state of the economic environment.
Cosmos (ATOM), Chainlink (LINK) and Optimism were Pantera’s top three-performing altcoins in November last year (OP). On the other hand, the bottom positions were taken by Uniswap (UNI), Solana (SOL) and Ethereum.
With the first few months of the new year over, the potential of the altcoin season is still debatable. However, some alternative cryptocurrencies saw a meteoric rise during the last bull run in 2020-2021, with some values rising 400 times.
At the moment Bitcoin (BTC) continues to see an upward trend, with its price up 1.1% over the previous week. This is despite the recent downturn. According to the Bitcoin Dominance (BTCD) index, the top crypto currency is currently in a strong position at 44.4.