Multicoin retrace 90% : just break-even

Original article by FYJ, BlockBeats

Soldman Gachs, who made a number of disclosures as a creditor of Three Arrows Capital, recently tweeted that he had just received his November investor statement from Multicoin Capital, which stated that the fund was "down 90% over the past 11 months." A stone aroused thousands of layers of waves, the wall down the people push, the comment area of cynicism, eat melon watch drama, afterthought of a variety of emotions, bear market in the public appearance, seems to be familiar with the script.

"Explanations to LP on FTX events" and partial disclosure of positions in different periods are the main sources of research on Multicoin. Multicoin lost 55 percent in November alone. According to the disclosure, only about 10 percent of the fund's assets are held in FTX. Due to Multicoin's large position in Solana, some speculate that SOL's 60 percent decline in November accounted for the remaining loss. Soldman Gachs, who wrote in November denouncing Multicoin and said he had redeemed his investment from it, attributed the "inaction" in the FTX thunder incident as the main reason Multicoin let him down: The irrational support for FTX and SBF did not evaluate the situation according to the situation, and only fought against risks, which resulted in huge losses. In addition, Soldman argued that since the Multicoin team itself had already made enough profit from previous years' performance commissions, and Multicoin itself was the largest investor in its flagship product, managers seemed "unrepentant about the loss."

Axios reported on December 30, 2021 that Multicoin's hedge fund assets have soared 20,287 percent since its launch in October 2017, and its first venture capital fund has returned more than 28 times returns to investors after fees. Among the projects with the highest return on investment are Solana, Helium and Arweave. In the raging bull market of 2021, Multicoin is undoubtedly one of the biggest winners in this market, SOL's maximum gain in 2021 is 120 times, HNT's peak price from less than $0.2 in the middle of the year to $52, and that is just the profit multiple of the secondary market. Multicoin's actual profits as an institution are even more exaggerated.

Different from the investment style of Alameda, 3AC and other technology flows and capital flows, Multicoin has been sticking to "thematic investment" since its inception. Kyle Samani and Tushar Jain, the two founders, always write to explain the "investment logic" behind every transaction. They are not afraid to sell projects that are "out of the mainstream", to buy into the divergence, to invest heavily against the trend, and this investment style has given the fund's subsequent success a certain "romantic" tint -- a style that was epitomized in the Solana battle. In the expansion war in mid-2020, sharding schemes dominated the market and various Ethereum killers emerged one after another. However, Multicoin believed that sharding was not the only option, and there was a huge cognitive gap in this circuit. Therefore, it took a new path and strongly supported Solana. Multicoin is on a pedestal.

Open the Portfolio on the official website, in the past year, there have been few cases of Multicoin's heavy position, but it still frequently sells Solana ecology. In the financial market, 90% profit is provided by 10% opportunity, which is particularly obvious in the crypto market. Multicoin is built on the core index such as Solana, which naturally also loses money in the decline of the core index. Other large positions held by Multicoin include ETH, HNT, MATIC and FIL, some of which have retreated sharply, and others that have moved back down the hill, according to the disclosure. In fact, looking back at the bear market of the past year, Multicoin's losses were just following the trend of the market. The 20 billion to 30 billion volume in the current normal market is down more than 90% from the 400 billion daily volume at the peak of the bull market in 2021. Nature is not immune.

Coin98 compiled the Multicoin investment map for 2021. 2021 was the year of the Multicoin boom, so much so that the market started looking for Multicoin investments that weren't on Binance

Along the way, investment gods emerge one after another; The building will collapse and the sound of reckoning will be heard. People are still that group of people, the market is still that market, just changed the world, this moment is no longer then. Whether or not Multicoin has another thousandfold return in its Portfolio today, Kyle Samani and Tushar Jain already have the means to retire with success. Return the complaint to the complainer, when the sun rises tomorrow, the new story will continue, the important thing is, after a long winter, in the face of the target of your desire, do you have enough ammunition in your hands?

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