Pantera Capital: The portfolio affected by the FTX collapse is less than 5%, and crypto companies should reduce the time assets stay on exchanges or with third parties

ChainCatcher message, Pantera Capital tweeted a summary and review of how to respond to the FTX crisis one year ago. They stated that after the news of FTX and Alameda's poor financial condition emerged, they formed a war room to assess the impact on their portfolio, identify all potential risks, and assist high-risk teams. After identifying all potential risks (custody, counterparties, investments, etc.), they worked with the affected teams to mitigate further risks and develop a plan moving forward. Due to their regular emphasis on proactive risk management practices to the founders, less than 5% of the portfolio teams were significantly affected.

Pantera advises that crypto companies should establish an internal process to minimize the time any assets spend on any exchange or with any third party; implement a multi-signature process for all asset transfers to avoid single points of control; diversify on-chain and off-chain counterparty risks by ensuring dealings with as many custodians, exchanges, and banks as possible; maintain liquidity and cash value of financial assets to avoid unnecessary principal risk in the company's financial assets; take measures to ensure bank accounts are protected within FDIC insurance limits; and transfer assets from co-mingled total wallets (such as exchanges or funds mixed with other funds) to on-chain isolated wallets (such as custodial, self-custodial, or any place where funds are isolated from other third-party funds).