Multicoin Capital’s Hedge Fund Takes a Massive Hit – Plans to Reduce Counterparty Risk
It is reported that Multicoin Capital\’s annual investor letter showed that its hedge fund lost 91.4% in 2022. The fund said that it had taken new measures to \”…
It is reported that Multicoin Capital’s annual investor letter showed that its hedge fund lost 91.4% in 2022. The fund said that it had taken new measures to “reduce counterparty risk”, including only retaining assets supporting 48-hour trading in the exchange each time, adjusting collateral management practices to reduce the amount of collateral held by the exchange for derivative positions, and cooperating with more crypto asset custodians, It aims to further diversify the custody risk. （coindesk）
Multicoin Capital: New measures have been taken to “mitigate counterparty risk”
Interpretation of the news:
Multicoin Capital, a hedge fund that focuses on investing in cryptocurrencies, has recently announced that its annual investor letter has reported a significant loss of 91.4% in 2022. This news has come as a shock to investors in the crypto world, who have watched cryptocurrencies’ incredible rise in the past year. The hedge fund’s management, however, stated that they are taking new measures to “reduce counterparty risk” in their future investments.
Multicoin Capital stated that they would only retain assets that support 48-hour trading in the exchange each time. This measure aims to reduce the risk of the fund’s positions being significantly impacted by any sudden price fluctuations. Furthermore, the management also plans to adjust their collateral management practices to decrease the amount of collateral held by the exchange for derivative positions. This measure will mitigate the risk of a mechanic margin call, which could negatively affect the hedge fund’s performance.
Another step taken by Multicoin Capital was to cooperate with more crypto asset custodians to diversify custody risk further. Custodians are third-party organizations that hold and secure cryptocurrency assets, and Multicoin Capital’s cooperation with several of them will help reduce the chance of any loss or theft of the fund’s assets.
Despite the significant loss suffered by Multicoin Capital’s hedge fund, the management is optimistic about the future of cryptocurrencies. They believe that the sector will continue to grow rapidly and that their investment strategies will adapt accordingly to take advantage of emerging opportunities. The hedge fund’s management has stated that they are taking these measures to ensure that they remain resilient in the face of future market disruptions.
In conclusion, Multicoin Capital’s announcement has shed light on the importance of counterparty risk management in cryptocurrency investments. This incident serves as a reminder to potential investors of the need to carefully consider such risks before investing. While cryptocurrencies have seen a significant surge in value in recent years, it is essential to remember that they remain a relatively new and volatile asset class.
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/5117/
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Recommended articles
-
Whale Address Sells 3 Million MATICs Earning $660,000 Profit: Is It Time to Invest in Polygon?
According to reports, according to Twitter user ember monitoring, a whale address sold 3 million MATICs (approximately $3.3 million) 7 hours ago, earning a profit of $660000.
Data: -
Promoting Diversity in the NFT Market
According to reports, Amberfi CEO JD Lasica stated that the NFT market should promote “underrepresented artists and art forms.” Western art continues to dominate the NFT field and is often seen as more valuable and prestigious than art from other cultures, which may limit the visibility and recognition of non Western art forms. Instead, Web3 can eliminate cultural boundaries. Viewpoint: The NFT market should promote “underrepresented artists and art forms” Analysis based on this information:The NFT market has grown rapidly in recent years, opening up new opportunities for artists to sell and showcase their work. However, the market has been criticized for its lack of diversity in terms of the artists and art forms it promotes. Western art continues to dominate the field, with many buyers and collectors placing more value on pieces that fit into this category. As a result, underrepresented artists and art forms struggle to gain visibility and recognition, limiting their ability to succeed in the market….
-
What is the Introduction to Bitcoin (Bitcoin Pitfall)
What is the introduction to Bitcoin? In the early stages of Bitcoin, we can understand it by providing some basic knowledge about various digital currencies. For example, what is Bitcoin, how does Bitcoin work, and what is the Medium of exchange For ordinary investors, they can first understand what blockchain is called because blockchain technology has great potential. For most investors, if they put all this information on it, they can easily use this software. Of course, there are other application scenarios as well. So what is the introduction to Bitcoin? Let’s analyze it together What is Bitcoin Bitcoin pit entryBitcoin pit entry is nothing new, but if you are a novice or have some knowledge of Cryptocurrency, you will find it difficult for many friends to buy Bitcoin Firstly, you know why someone would buy it because it is an investment tool (such as gold), and once investors start researching this product, they need to invest a lot of…
-
Joey Krug Joins Founders Fund: A New Chapter in Crypto Investment
According to reports, Joey Krug resigned as the co chief investment officer of Pantera, a crypto venture capital firm, in February of this year and announced on Monday that he had
-
Analyzing the Web3 Sector – Major Attacks and Rug Pulls in Q1 2023
On April 12th, according to the Beosin EagleEye security risk monitoring, warning, and blocking platform under the blockchain security audit company Beosin, 61 major attacks in the
-
Binance CEO Dismisses Forbes’ Accusations as Deliberately Distorted
It is reported that CZ, the chief executive of Binance, said on social media that many of Forbes\’ accusatory questions are negative and deliberately distort th…
-
NFT Market Sentiment Index: Cool and Stable?
It is reported that according to NFTGo data, the current NFT market sentiment index is 28, rated as \”Cool\”. The number of buyer addresses and seller addresses in the NFT market in
-
Token Approval Explorer Contributes 200 BNBs to Tornado Cash
According to reports, PeckShieldAlert shows that the address labeled “Token Approval (SwapX) Explorer” has transferred 200 BNBs to Tornado Cash. The address related to the SwapX attack has transferred 200 BNBs to Tornado Cash Analysis based on this information:According to a report by PeckShieldAlert, an address labeled “Token Approval (SwapX) Explorer” has transferred 200 BNBs to Tornado Cash. This news has prompted speculation and concern within the cryptocurrency community. Firstly, the fact that the address is associated with Token Approval Explorer suggests that it is connected to the SwapX platform in some way. SwapX is a cryptocurrency exchange that allows users to swap different tokens without having to go through a centralized exchange. This can be a safer and more convenient option for users. However, the involvement of Token Approval Explorer raises questions about the security and legitimacy of the transaction. Secondly, the transfer of such a large amount (200 BNBs) to Tornado Cash has raised eyebrows. Tornado Cash is…
-
The Night Watchdogs: CFTC, Federal Reserve, and U.S. Department of Justice work in tandem for Bank of Silicon Valley
21:00-7:00 Key words: CFTC, Federal Reserve, U.S. Department of Justice, Bank of Silicon Valley Overview of important developments overnight on March 14 Analysis based on this information:The message states that from 9:00 pm to 7:00 am, three key regulatory organizations in the United States, namely the Commodity Futures Trading Commission (CFTC), the Federal Reserve, and the U.S. Department of Justice, are at work. They are working on a joint project to oversee the compliance of the Bank of Silicon Valley with the regulations implemented to maintain the stability and security of the country’s financial system. The three organizations have collaborated for a reason. The CFTC is the regulator responsible for overseeing the derivatives markets, while the Federal Reserve is the central bank that monitors financial stability and economic growth. On the other hand, the U.S. Department of Justice’s mission is to enforce the law and defend the interests of justice. Cooperation among these institutions is crucial for the proper functioning…
-
What does etp entropy mean (where is the global entropy headquarters of etv)
What does entropy mean? What does entropy mean? In blockchain, it is called “epoch” and is a timeline. When a block is generated through a period of delay, it forms a point like data structure (i.e., on chain data, block information, etc.) Because digital currencies such as Bitcoin and Ethereum are network systems built on distributed ledger technology based on Proof of work mechanism. Therefore, we can define this as’ epoch ‘. If there are enough miners involved in mining, the entire network can reach a speed of 10 million transactions per second. As more and more people join this decentralized economy, this consensus has also emerged The so-called ETH is “ether” or “ezcash”. That is to say, as long as someone is willing to use these resources to maintain system stability, they are likely to use their own power supply to obtain a certain degree of income. However, for some small-scale users, ‘eth’ is not suitable for trading as…
-
What coins does Bitpie Wallet support (2021 Bitpie Wallet Tutorial Video)
What coins does Bitpie Wallet supportAs of now, Bitpie Wallet has integrated mai
-
Immutable X announces largest token utility upgrade in history
According to reports, the L2 expansion plan Immutable X announced on Twitter that the largest token utility upgrade in history is imminent. According to previous news, Immutable X collaborated with the chain game Illuvium to launch an IMX transaction reward plan for Illuvium NFT. Immutable X: The largest token utility upgrade in history is coming soon Analysis based on this information:Immutable X, the Layer 2 scaling solution for Ethereum, has recently announced on Twitter that the largest token utility upgrade in history is imminent. This announcement is significant for both the team and investors who have been eagerly waiting for the upgrade’s debut. This move follows the team’s collaboration with the chain game Illuvium to launch an IMX transaction reward plan for Illuvium NFT. Immutable X has emerged as a popular scaling solution for Ethereum due to its fast transaction speeds and low fees. This scalability solution allows for the creation and trade of NFTs on Ethereum without sacrificing the…
-
Merit Circle Collaborates with Walker World to Enhance Gaming Experience Through Innovative Technologies
On March 14, the chain game association Merit Circle announced its cooperation with the large open world adventure and multiplayer game Walker World, and invested 750000 dollars in Walker World. Walker World is supported by Fantasy Engine 5, which can provide dynamic game experience through HD graphics. The team is committed to providing games that integrate AR, VR, blockchain and other technologies. Merit Circle, a chain game association, invested 750000 dollars in Walker World, a Web3 game Analysis based on this information:Merit Circle, a chain game association, recently declared its collaboration with Walker World- a popular open-world adventure and multiplayer game. In this partnership, the Merit Circle invested $750,000 to fund Walker World. The game employs Fantasy Engine 5, a technology known for providing an immersive gameplay experience through its high-definition graphics. The Walker World team is dedicated to delivering innovative gaming experiences by integrating advanced technologies such as augmented reality (AR), virtual reality (VR), and blockchain. With the integration…
-
What is “INF” in coolcoin? (What does “ino” mean in the currency circle?)
In coolcoin, what is \”INF\”? According to official sources, INF in coolcoin is a
-
FIL Hits New Highs Amidst Market Volatility
According to the report, the market shows that FIL has broken through US $7 and is now reported at US $7.02, with a daily increase of 29.52%. The market is vol…
-
Large transfer of Ether to Coinbase raises questions about the identity of the sender
According to reports, Whale Alert data showed that 26636 ETHs (valued at $39143078) were transferred from unknown wallets to Coinbase. 26636 ETHs transferred from unknown wallet to Coinbase Analysis based on this information:A large transfer of 26636 ETH, with a total value of $39143078, was recently reported by Whale Alert. The ETH was sent from unknown wallets to Coinbase, a popular cryptocurrency exchange. This transfer has raised questions regarding the identity of the sender and their potential motivations. Whale Alert is a service that tracks large cryptocurrency transactions and alerts users of significant movements. The transfer of over $39 million in ETH is certainly significant, and the fact that it was sent from unknown wallets has caught the attention of cryptocurrency enthusiasts and traders. Coinbase is one of the most well-known and widely-used cryptocurrency exchanges, with millions of users globally. The exchange allows users to buy, sell, and store various cryptocurrencies, including ETH. Coinbase also provides a platform for trading,…