Bitcoin Global News (BGN)
August 17, 2018 -- ADVFN Crypto NewsWire -- With the news
yesterday that Pantera Capital, which is known as a
hedge fund based only on crypto, is in the midst of fundraising for
its third venture fund, the question arises: what is the true value
of a crypto based venture fund as compared to a traditional venture
fund?
Keep in mind that just as it looks
at face value, a crypto venture fund is one that only deals in the
Crypto space. Therefore, if a project is not Crypto related, none
of their time and resources will be spent on it.
Going back to the present time,
since Pantera is now looking for $175 million for its
newest venture fund, it is logical to wonder why investors
should give them such an amount, given that according to
Cointelegraph, it is six times more than their last fundraising
round.
On Pantera Capital’s website, they
do have a short section dedicated to investors, but it divulges little to no
information as to what makes the fund unique, beyond essentially
promising to do so via email to anyone who fits their
requirements.
What is in fact publicly available
and telling on this subject, is the section of their website
dedicated to their portfolio. Unlike some venture funds that keep
this information private to all except their employees and their
investors, Pantera appears to have published their entire portfolio openly.
All in all, in some ways it is
telling as to the direction that their funds are taking and in some
ways, it is not. Given that their portfolio includes everything
from Bitcoin to Doc.ai to Brave Browser and beyond, it is almost
immediately clear that Pantera is trying to diversify its funds as
much as possible.
At the same time, the main issue
with this is that an industry specific fund can only be so
“diversified.” When it comes to the Crypto space’s volatility,
which is arguably more drastic than
any other industry’s as of now, it also does not seem possible to
make any sort of guarantee related to the stability of Pantera’s
funds.
Despite all of this, as of the end
of last year, Pantera had reportedly achieved 25,000%
returns since the inception of its funds. It appears that
this was their main draw up until recently, because as we who have
been in the crypto space know, there is a significant difference
between cryptocurrencies in 2017 and cryptocurrencies in
2018.
According to the same piece by CNBC
that originally announced these massive returns, by April of this
year, Pantera had experienced a 50% decrease in their
gains.
In short, this year has not been
good to investors so far. Because of this, the question remains:
how will Pantera choose to market itself to investors in a
generally sinking market?
Furthermore, will they end the year
with any sort of significant returns?
Only time and the price of Bitcoin
will tell, by and large.
By: BGN Editorial Staff
News:
Bitcoin
(BTC)
Pantera
Capital
Cryptocurrencies