Multicoin Capital hedge fund lost 91.4% in 2022, marking its worst performance since inception

ChainCatcher news, according to a report by CoinDesk citing a copy of Multicoin Capital's annual investor letter, the hedge fund of Multicoin Capital lost 91.4% in 2022. The letter attributed the losses to the decline in cryptocurrency market capitalization and the direct and indirect impacts of the bankruptcy of the cryptocurrency exchange FTX.

The letter stated: "While the fund successfully avoided the catastrophic implosion of LUNA and Three Arrows Capital earlier this year, we failed to avoid the explosive disclosures related to FTX, and the contagion that subsequently spread throughout the market. After an extraordinary 2021, our performance in 2022 was the worst since our inception."

Led by managing partner Kyle Samani, Multicoin Capital launched its hedge fund strategy in October 2017, investing in liquid tokens. The firm also operates three venture capital funds and invested in the now-bankrupt exchange FTX. Multicoin stated it is "still committed" to its long-term strategy, "not trying to time the fleeting market." (Source link)