Multicoin Capital posts 91.4% loss in 2022

Investments in FTX and Solana made 2022 the worst year for crypto hedge fund Multicoin Capital since the company was founded.

Investments in FTX and Solana made 2022 the worst year for the crypto hedge fund Multicoin Capital since the company was founded.

According to a Coindesk report, the crypto hedge fund Multicoin Capital recently reported a loss of more than 91 percent for 2022 to its investors. The past year was marked by the collapse of several crypto institutions, including Terra-LUNA, the lending platform Celsius, and the hedge fund Three-Arrows-Capital.

As Multicoin allegedly told its investors, it wasn’t these collapses that caused the bitter losses, but the collapse of the crypto exchange FTX.

For example, about 10 percent of the company’s capital was still locked in FTX. In addition, the firm had heavily invested in the FTT token and the Solana ecosystem, which depends on FTX.

Despite all of this, the company says it has generated roughly 2,800 percent in profits since its founding. This is one reason why the firm remains “steadfast” in the current bear market.

For the future, the company has also learned from last year’s debacle. Going forward, unused cryptos will not be kept on a single exchange for more than 48 hours, and multiple custodians will be used to spread the risk.