Pantera Capital reportedly suffered a loss of 80 percent of its liquid token fund in 2022 due to the severe bear market in the crypto currency industry. In addition, the business incurred a deficit of 23% in only the month of November alone as a direct result of the catastrophic collapse of FTX.
The loss suffered by the Pantera 2022 liquid token fund is relatively small compared to the decline in value seen by the Bloomberg Galaxy Crypto Index during the same period.
On the other hand, Pantera's fund had somewhat recovered by the beginning of this month, as was disclosed (1) in a January investor call released to YouTube six days ago.
In January, the world's largest crypto currency hedge fund reportedly recovered 47% of its losses. This information was provided on a call with investors.
At the time of the call, the multi-strategy vehicle known as the Pantera Liquid Token Fund had a total of $198 million in assets managed by its team (AUM).
In addition, thirteen tokens were included in the portfolio of the liquid token fund, which typically invests anywhere from 15 to 25 different liquid tokens at any given moment.
The liquid coin that Pantera uses is "predominantly driven by a flexible strategy focusing on decentralized finance and related assets," as the company's website states (2).
Look back At Pantera Investments in 2022
During the investor call, Joey Krug, also the co-chief investment officer at Pantera, discussed many significant events during the spring of last year. According to Krug, the fund started moving a substantial portion of its holdings away from other crypto currencies and towards Ether (ETH).
This new event co-occurred with the devaluation of Terra's USDT stablecoin and Luna, which was Terra's sister coin. These failures contributed further to what ultimately led to the failure of the crypto currency loan platform Celsius Network.
Even though Pantera moved its focus to Ether in the middle of the previous year, the crypto currency venture capital firm has lately transferred assets to other altcoins in preparation for an alt season.
Pantera continues to have a bullish outlook on the prospects of alternative crypto currencies despite the market showing indications of revival. However, it is still far too early to determine whether an alternative season has started or is already in full swing.
The growing interest and acceptance in decentralized finance (DeFi) initiatives is reflected in Pantera's plan to return some of its funds to alternative cryptocurrencies.
Pantera believes that many of these enterprises, which rely on alternative crypto currencies as a means of facilitation, have the potential to disrupt established forms of financing. This implies that alternative crypto currencies have the potential to alter the current state of the economic environment eventually.
Cosmos (ATOM), Chainlink (LINK), and Optimism were Pantera's top three-performing alternative crypto currencies for November last year (OP). On the other hand, the positions at the bottom were taken by Uniswap (UNI), Solana (SOL), and Ethereum.
As the first few months of the new year wind down, the possibility of an altcoin season is still up for debate. Nevertheless, some alternative crypto currencies saw a meteoric rise during the last bull run in 2020–2021, with some values skyrocketing as much as 400 times.
Bitcoin (BTC) continues to see an upward trend during this time, with its price staying 1.1% higher over the preceding week. This is even though a recent drop occurred. The top crypto currency continues to have a strong position, as indicated by the Bitcoin Dominance (BTCD) index, which presently sits at 44.4.