Multicoin Capital’s investor letter shows that the company’s hedge fund lost more than 91 percent last year.
The fact that last year was a dark year for cryptocurrencies affected every stakeholder in the industry. However, the main reason for the decline in Multicoin Capital is the bankruptcy of FTX.
Multicoin Capital Hurts Too Much From FTX
The nightmare of the past 2022 for cryptocurrencies has seriously affected all the players of the industry. One of them was Multicoin Capital. The company wrote in an investor letter that the hedge fund lost more than 91 percent last year.
The fund’s performance has been severely impacted by direct exposure to the now-bankrupt crypto exchange FTX and holdings in FTT and Solana-based tokens. Multicoin Capital’s hedge fund lost 91.4% in 2022, according to a copy of the company’s annual investor letter.
The letter read:
“While the fund successfully recovered from the devastating explosions of LUNA and Three Arrows Capital earlier in the year, we did not avoid the explosive revelations about FTX and the subsequent market contagion. After the extraordinary year in 2021, our performance in 2022 was the worst since the start.”
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