An investment professionals jump into the bear market with new crypto hedge funds

An investment professionals jump into the bear market with new crypto hedge funds

Two investment experts have teamed up to found a crypto hedge fund, while they are immersed in the bear market of an industry that is a co-founder james ho "One of the most transformative technologies" of his career will be.

Ho and Vincent jow are the co-founder of modular capital, announced on Monday that gave a company in liquid token and wants to invest other segments of the cryptor room.

HO most recently worked as a director at Altimeter Capital, where he focused on public and private investments in the fintech and cryptosectors. Before that, he worked at The De Shaw Group for about four years and invested in industries such as Fintech, payment transactions, media and telecommunications.

Before the Modular Capital Modular Capital was founded, JOW has been similar investments in Holocene Advisors based in New York since 2017.

In recent years, further crypto use cases have appeared, Ho told Blockworks and noticed the growth of Defi (decentralized finances) and the underlying protocols in the sector, which he said of which they had started to resemble real companies.

"All of this was really interesting for us to think about how you have this rich, growing ecosystem that we believe that it is still in its infancy," said Ho. "We believe that crypto will be much bigger when we look in five or ten years."

Modular Capital collected $ 20 million of donors such as Multicoin Capital, Parafi Capital, Road Capital and Ledgerprime.

focus of the fund

Modular Capital should include between 10 and 20 core positions in its portfolio, and defi - or decentralized open financing, as HO calls it - will be a focus.

"I think in many ways you will build the traditional financial stack on more modern and trustworthy rails," he said, "especially if you move into a world that starts to look more multipolar and less of the USA."

The company will also try to invest in primitive that enable applications to create more rich experiences for users, such as: B. Layer 1 and Layer 2 blockchains or various web3 infrastructure tools.

HO said the company would also monitor the role of NFTS, from which he expects you to flow into various experiences in order to unlock certain skills for owners.

"Of course, simple profile pictures and JPEGs were the first trip in this direction last year, but I think you will see a lot more interesting things about music, content, concerts, ticketing and games," he said.

Start in a bear market

The start takes place because the prices for crypto tokens have dropped sharply in recent months and companies have to deal with liquidity problems in space.

The bear market stops after the collapse of Terra's algorithmic stablecoin and Luna token in May as well as the fighting of companies such as Three Arrows Capital, Voyager Digital and Celsius.

The co -founders of Modular Capital gave up their full -time positions in March and are planning the start for several months, said Ho, noting that he and Jow had not expected to start a bear market directly.

"I think the reality is that crypto is quite preceded by itself," said Ho. "At the end of last year, you saw a lot of foam in the ecosystem - a number of things that were only strongly subsidized, had no real demand for organic products and were not really suitable for the market."

But the industry has seen in the past few months that "much of this air came out of the ecosystem," added the co -founder and found that a number of protocols have now received more realistic reviews.

Modular Capital intends to be patient with regard to the pace of capital operations and could try to increase the commitment in the next three to nine months.

"We do not try to guess the price development from month to month or even from quarter to quarter to most of these protocols," said Ho. "We are generally looking for it [Whether] these will become real, permanent companies over the course of several years."

Since Krypto has recently learned the lessons of traditional finances "at full speed", Ho said, the rules for unsafe -loving loans will probably be stricter and investors will be more skeptical about algorithmic stable coins.

"I think many of them [events] will further strengthen the ecosystem and make it more robust," he said. "There are probably a few more shoes that have to be dropped over the course of the year, but I think in general the market has definitely moved quite far down so that we can start our funds."

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The post "Investment professionals jump with new crypto hedge funds into the bear market" is not a financial advice.