Crypto VCS expect failing FTX investments
Crypto VCS expect failing FTX investments
The Venture Capital (VC) companies Sequoia and Multicoin Capital have published letters to limited partners in which they indicate their exposure risk of the collapsed crypto exchange FTX.
Multicoin Capital, a cryptofocussed VC unit, has supposedly informed the partners of his master fund that it was not able to do all of it, that it was not able to held cryptos before the withdrawals were stopped on Tuesday, which would only save 24 % of the funds held there.
ftx had experienced an inflow of $ 6 billion in withdrawals, which triggered a bank run that followed revelations that the company was involved in discussions with Binance about a buyout deal. This deal has become angry since then.
approximately 10 % of the total managed assets of multicoin are still closed on the stock exchange until payment permits are granted, the company said. These include Bitcoin, Ether and USD.
It could take months for the process to see through that FTX should take the bankruptcy move, similar to Celsius Network at the beginning of this year. The bankrupt lender still has to heal its customers.
While his funds are the worst explosions of Celsius, Voyager and Terra, Multicoin said that due to its position in the token FTT of the stock exchange and other assets enclosed on the platform, it could not be avoided to be involved in FTX's bankruptcy.
The company also informed the partners that the largest digital wealth position of the Native Token (Sol) fund of Solana is. Sol, which was previously written by FTX CEO Sam Bankman-Fried, has fallen by more than 50 % since Tuesday, from $ 29 to around $ 15, and is now less worth less than the Memecoin Shiba Inu with dog motifs.
When the CEO of Binance, Changpeng Zhao, with this began to dismantle the position of his stock exchange in FTT, the sister company of FTX, Alameda Research, probably Sol, sold to support FTT's price.
MultiCoin said it was trying to reduce unnecessary risk by calling back all outstanding collateral and infection of another counterparty-the crypto finance service company Genesis-eliminates. Further details about why MultiCoin wanted to reduce his genesis engagement were not provided.
Genesis, meanwhile, tweeted on Thursday that it sold collateral, which overall led to a loss of around $ 7 million Counterparties including Alameda.
Sequoia Capital writes crypto exchange FTX from
At about the same time, Sequoia Capital gave a FTX investment would reduce to $ 0.
"In the past few days, a liquidity crisis has created a risk of solvency for FTX," said Menlo Park. "The full extent and risk is currently not known." Sequoia was founded in 1972 and is one of the longest existing and most successful VC companies in Silicon Valley, who supported technology giants such as Apple and PayPal.
Sequoia, which is involved in FTX and FTX and FTX.
The distancing of FTX is part of a large restructuring in the industry that has shaken investors, spurred on by the public speculation About whether ftx newly pledged Client Crypto to save Alameda in the second quarter of this year.
Here is the note that we have sent to our LPS in possibly in possibly. pic.twitter.com/cgp1yxk1pz
- Sequoia Capital (@squoia) 10. November 2022
"At the time of our investment in FTX, we carried out a strict care process," said Sequoia in his letter. "In 2021, the year of our investment, FTX achieved sales of around $ 1 billion and an operating result of more than $ 250 million, as was published in August 2022."
if necessary, which aims at software and technology companies, consists of $ 7.5 billion in the amount of $ 7.5 billion with a division of $ 1.7 billion or $ 5.8 billion, said Sequoia.
The entire managed assets of Sequoia was um $ 85 billion earlier this year.
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The article Crypto VCS Reckon with Failing FTX Investments is not a financial advice.
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