Pantera Capital Hedge Fund Lost 50% of Assets in March

This month was the worst month in our model's 27-month history, co-chief investment officer of thee fund said
11 April 2018   704

Specializing in blockchain industry investments venture company Pantera Capital announced that its digital assets fund lost nearly half of its funds in the past month. The company stated this in a letter to investors, CNBC reports.

This was a really rough month for the Digital Asset Fund and the space in general. We're in a market with around 100 percent annualized volatility and this month was the worst month in our model's 27-month history.
 

Joey Krug

Co-chief investment officer, Pantera Capital,

The message notes that since December 1, 2017, the fund of digital assets has lost only 3.1% in comparison with bitcoin, which for the same period fell by 37.4%. At the same time, for last March, Pantera assets decreased by 45.7%.

This performance is basically in line with our expectation — given the huge move in the market as a whole.
 

Joey Krug

Co-chief investment officer, Pantera Capital,

At the same time, bitcoin fell by 34% between March 1 and April 1. BTC started the month at a level higher than $ 10,000, after which it began to slip smoothly into the area of ​​$ 6,000 after the statements of a number of regulators and increased sales activity on the eve of the tax season.

It is noted that 2017 was a record year for bitcoin - the coin grew by more than 1300% and almost reached $ 20,000. This helped the Pantera Capital fund increase its assets by about 20,000% by December. In a letter to investors, it is also said that despite a fall of almost 50%, the fund still boasts an income of more than 10,000% since its inception in 2013.

Also, cryptocurrency transactions are subject to capital gains taxes, so Pantera and other investors attribute the current price pressure to "investors beginning to realize tax obligations."

A portion of the selling pressure on the market in general has been unintended tax positions. There were $300 billion of capital gains created last year. That could have caused a decent chunk of the sales.
 

Dan Morehead

CEO and co-chief investment officer, Pantera Capital

It is noted that bitcoin became one of the main reasons for the negative results of the fund in March. This year, BTC lost more than 50% and at the time of publication is trading around $ 6,800. In turn, the fall in the rate of Ethereum, Dash and Waves also proved to be one of the main negative factors, the message says.

At the same time, representatives of Pantera announced investments in the Ethereum competitor, but noted that they can not yet announce the name of the company.

If you had a portfolio of IPOs — one was Pets.com and one was Amazon.com — it doesn't matter what the rest were. You made a great return.
 

Dan Morehead

CEO and co-chief investment officer, Pantera Capital

Last month, Pantera Capital, which manages assets worth about $ 724 million, also announced the launch of a third venture fund aimed at blockchain. It was noted that the new organization will concentrate on P2P-transactions, fintech, artificial intelligence and machine learning.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   197

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.