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