- Coin Wu tweeted that Multicoin Capital announced the firm’s fall as a result of FTX’s collapse.
- The company declared that still it has a belief in Solana.
- Though Multicoin anticipates a worse condition, it hopes that it could recover the assets from FTX.
The Chinese Reporter Colin Wu, updated his Twitter account with the crypto venture firm Multicoin Capital’s declaration that the company is “holding its position and still believes in Solana”.
Wu tweeted as per the reports of CNBC, though the company was able to retrieve almost one-quarter of its assets, the stranded money represented 15.6% of the fund’s assets:
Multicoin said it’s holding its position and still believes in Solana. 15.6% of the fund’s assets. CNBC reportedhttps://t.co/8aJglDfrrD— Wu Blockchain (@WuBlockchain) November 18, 2022
On Thursday, Multicoin Capital informed the investors through a letter, the fall of FTX and the price plummets across the crypto space resulted in the firm’s fall by 55% this month.
Further, the Multicoin Managing Partners Kyle Samani and Tushar Jain commented that the company had too much trust in their relationship with FTX and had “too many assets on FTX”. Though the company hopes for a recovery of some funds from FTX, it anticipates the possibility of falling to zero as those assets are caught in the bankruptcy procedures.
Notably, the company official told that the company would continue trading to “access the present market fallout”:
At present, the fund has no assets exposed to any other counterparties. In the future, we anticipate some diversification of custodial exposure – with Coinbase (NASDAQ:COIN) expected to remain our primary custodian – and will resume trading with other counterparties as we continue to assess the present market fallout.
The company had been anxious about the anticipated fall of crypto in the upcoming weeks. In the letter, it evidently mentioned the possibility of many trading firms being wiped out, which would result in liquidity pressure throughout the crypto ecosystem.
In addition, the company declared that Multicoin is planning to “buy dislocated assets at attractive valuations”, as other companies tied to FTX are in search of raising emergency funds.
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