Fred Wilson, co-founder of the venture capital Fund Union Square Ventures (USV), reported that Multicoin Capital became the sixth cryptocurrency hedge Fund, in which the company has invested over the past year and a half. It is also the ninth active investment USV in the industry of the blockchain and cryptocurrency. Investments of the Fund in this area account for about 15% of his portfolio and about 25% of its recent investments.
However, according to Wilson, Union Square Ventures model is not optimized for investment in bitcoin and the blockchain, since such companies are often financed through the tokens, and the Fund may not retain a large percentage of such a volatile asset and is limited to 20% of “unskilled” investments (which includes tokens). This problem should be solved Multicoin, which focuses exclusively on the blockchain and cryptocurrency. Wilson says:
You can earn a lot of money if you are right about the fact that most people think it is wrong.
One example of this is EOS. Multicoin gave a positive Outlook for the growth of EOS in about a month after John Oliver made fun of the project on his show Last Week Tonight.
Press Secretary Multicoin told Fortune that while investments brought under the control of the organization up to $75 million Also in March, Multicoin has received funds from the Mark Andreessen and David sacks, the former Executive Director of PayPal, which was founded focused on the cryptocurrency market venture company Craft Ventures. Then the Multicoin founder Kyle Samani told Reuters that by the end of June, the Fund expects to attract investment of $250 million At the moment the assets Multicoin is still well below that goal, but he still hopes to soon receive funding in an amount not less than $200 million.
Samani does not disclose revenues Multicoin, but says that in this year, the Fund surpassed the index of the crypto Bitwise HOLD 10 (overall rating for investors in crypto-currencies) and bitcoin. This does not mean that Multicoin earned in 2018, and only shows that the better is the Fund’s managed assets relative to the index 10 and HOLD bitcoin. Multicoin puts both on long and short, i.e. the growth of the value of digital assets and seeks to capitalize on the depreciation of the cryptocurrency.
Multicoin invests 85% of its assets in a variety of actively traded cryptocurrencies. Bitcoin and the air now accounts for less than 20% of the Fund. According to Samani, Multicoin prefers not hadlet these top two cryptocurrencies, and actively invested in the lesser known coins.
Other cryptocurrency hedge funds invested in USV, steel Polychain Capital, Metastable Capital, Capital Blocktower, Autonomous Partners and Placeholder Capital. Also, USV is one of the early investors in Coinbase cryptocurrency companies, OB1 and Protocol Labs.