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.

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.

Will the FTX market get worse before it rebounds?

Crypto venture firm Multicoin Capital told investors in a letter on Thursday that FTX’s collapse and the price declines across the industry has pushed the fund down by 55% this month, and added that the market is poised to get worse before it rebounds.

Where is FTX based?

FTX is based in the Bahamas, where Bankman-Fried resides. Like many crypto companies, FTX created its own token called FTT, which could be purchased like bitcoin though it wasn’t as widely available. Owners of FTT were promised lower trading costs and the ability to earn interest and rewards like waived blockchain fees.