EARLY

Solana Labs' early investor Foundation Capital has raised $600 million for its 11th fund

ChainCatcher news, according to The Block, Silicon Valley venture capital firm Foundation Capital has raised $600 million for its 11th fund. The firm, an early investor in Solana Labs, will continue to focus on supporting early-stage startups.This venture capital firm, established 30 years ago, primarily invests in areas such as cryptocurrency, fintech, and artificial intelligence. It stated that the new fund will continue its tradition of supporting founders before product building or revenue generation, providing support at the "zero starting point" stage. Foundation Capital noted that 80% of its investments occur before a company generates its first dollar of revenue, "We look for what we call 'zero-to-billion-dollar markets'—these opportunities do not appear in industry forecasts because they are only visible to those who can see beyond the current existence."Foundation Capital is one of the early investors in Solana Labs, having participated in its $20 million Series A funding round in 2019. Its cryptocurrency portfolio also includes Binance U.S., OpenSea, MoonPay, Algorand, Stacks, BCB Group, Helius, Jito, and Kamino. The firm stated, "We have been investing in blockchain since 2014, unaffected by the harsh cryptocurrency winter."Foundation Capital's 11th fund has grown by 20% compared to the previous $500 million fund that closed three years ago. The firm's partner Rodolfo Gonzalez stated on social media, "If you are a seed-stage founder working in cryptocurrency, fintech, or enterprise AI, please come talk to us."

Wintermute: Nearly $3 billion in long positions have recently been liquidated, and market risk aversion is beginning to intensify

ChainCatcher news, the encrypted market maker Wintermute released a market research report indicating that recently, driven by ETF fund outflows, concerns over SOL unlocks, and liquidity issues following the Bybiy hack, the cryptocurrency market accelerated its decline when Trump announced new tariff policies, exacerbating trade war fears. Market risk aversion began to intensify, with nearly $3 billion in long leveraged positions being liquidated.The U.S. Securities and Exchange Commission (SEC) has recently significantly reduced its enforcement actions against cryptocurrency companies, including:Agreeing to withdraw its lawsuit against Coinbase;Ending the investigation into OpenSea;Concluding the investigation related to Robinhood's cryptocurrency listings;Suspending the investigation into Uniswap's facilitation of unregistered securities;Ending the nearly two-year investigation into Gemini's yield program;This regulatory thaw marks a significant reversal from the previous administration's approach, with the SEC seemingly reassessing its stance toward the cryptocurrency industry.Bitcoin ETF net outflows hit a record, with $2.5 billion flowing out last week, including a single-day outflow of $1 billion, bringing the total outflow for February to $3.3 billion (compared to the previous record of $343 million set in April 2024). The CME futures basis dropped from 22% in December to a low of 4% last week, significantly reducing the profitability of basis trading strategies. Futures indicators reflect this shift: open interest fell to $13 billion, and monthly trading volume dropped to $247 billion, with both sides at their lowest levels since October 2024.The significant market reversal following Trump's announcement of a "cryptocurrency strategic reserve" on Sunday reveals that the cryptocurrency market is now highly sensitive to administrative signals. The market's reaction exceeded the actual content of the announcement, which largely reiterated the executive order from January. The unwinding of Bitcoin ETF arbitrage strategies highlights the increasingly tight integration between traditional markets and the cryptocurrency market, with both sides now responding quickly to each other's movements. As institutional cryptocurrency products and platform services expand, these cross-market dynamics and competitive user activities may intensify.
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