The FTX outbreak’s geographic reach is expanding quickly. Multicoin Capital, a crypto venture capital firm, informed its investors on November 17 that the FTX crash had resulted in the fund’s shocking 55% decline from the prior month.
Multicoin believes there is a chance it will one day receive its money back from FTX. Multicoin Capital, however, decides to write FTX down to zero because they are currently going through bankruptcy proceedings.
The cryptocurrency investment industry was evasive regarding the amount it is deducting due to the FTX crash. According to industry experts, this could be worth more than $850 million.
Kyle Samani and Tushar Jain, managing partners of Multicoin, said they put entirely too much trust in our relationship with FTX. On FTX, we had too many assets.
This is a devastating setback in light of Multicoin’s $430 million fund announcement from July.
The FTX collapsed last week, recovering about a quarter of the company’s assets. Even so, the company still has 15% or so of its assets listed on FTX.
The assets of Multicoin Capital were distributed among Binance, FTX, and Coinbase. Currently, the entire portfolio of the remaining crypto venture funds is either held in self-custody or on Coinbase.