Is Multicoin Capital impacted by FTX's collapse?

Multicoin Capital, one of the top crypto-focused venture capital firms, is significantly impacted by crypto exchange FTX's collapse, a letter obtained by The Block shows.

Is Multicoin Capital slowing down?

Crypto venture capital giant Multicoin Capital isn’t slowing down in the face of the market slump with its latest fund, the $430 million Venture Fund III.

How did Multicoin perform in 2022?

As the broader crypto market rebounded from last year’s lows, Multicoin reported the fund gained 100.9% in January 2023, bringing the fund’s inception-to-January return to 2,866%. Multicoin’s 2022 losses stem from the assets stuck on FTX and holdings in tokens directly impacted by FTX, including the exchange token FTT.

Will FTX collapse cause more failures?

Multicoin Capital, one of the top crypto venture firms, told investors in a letter on Thursday that FTX’s collapse will cause additional failures. “Many trading firms will be wiped out and shut down,” the letter said. Because of its writedown of assets on FTX and the broader drop in crypto, Multicoin said its net performance is down 55% this month.