1 year ago
Pantera Capital CEO, Dan Morehead, posted a tweet precocious past nighttime addressing the fallout of the ongoing FTX concern and however it highlights the value of what Pantera is building.
FTX underscores the value of what we are gathering present – a much efficient, decentralized, and unfastened fiscal ecosystem.
As my co-CIO @joeykrug writes: "The travel whitethorn not ever beryllium casual oregon smooth, but it is necessary."
Thoughts connected this week: https://t.co/WH3YJLBeVD
— Dan Morehead (@dan_pantera) November 11, 2022
Morehead’s connection is elaborated upon successful the latest update to Pantera’s ‘Blockchain Letter’ — a monthly missive that covers a scope of topics focused chiefly connected and astir the blockchain ecosystem.
Updated Nov 11 by Pantera co-CIO Joey Krug, the latest summation to Blockchain Letter summarizes the FTX and Alameda Research fallout and the mitigations of imperishable superior loss.
“Our attack towards situations similar these archetypal focuses connected safeguarding the portfolio arsenic overmuch arsenic possible.”
Pantera aims to minimize “exposure to centralized counterparties successful general” portion ensuring that commercialized flexibility is maintained.
Addressing the concerns surrounding their vulnerability to the FTX event, the steadfast explains that their main “risk/losses” are derived from their Blockfolio acquisition proceeds — denominated successful FTT and FTX stock.
“We liquidated arsenic overmuch of this FTT arsenic imaginable connected Tuesday, November 8th. Prior to the collapse, connected Monday night, our FTX equity and FTT token positions totaled nether 3% of our full steadfast AUM.”
Having swiftly implemented precautionary measures aft the FTX and Alameda fallout, Pantera speculates the likelihood of a regulatory effect — though they are “cautiously optimistic it volition output medium- and semipermanent affirmative results.”
Reflecting upon the situation, Pantera highlights the “need for decentralized, trustless protocols that let users to trade, hold, and transportation their assets without relying connected entities similar FTX, Celsius, oregon Voyager.”
The request for centralized intermediaries is acknowledged wrong the Blockchain Letter, suggesting the apt lawsuit that specified entities volition beryllium “subject to stricter oversight of reserves, audits, and hazard controls.”
“On a idiosyncratic level, the implosion of FTX has reminded america of what we’re doing here. Our ngo – arsenic a steadfast and arsenic an ecosystem – is not to replicate the risks and inefficiencies successful accepted finance. It is to physique a much efficient, decentralized, and unfastened fiscal ecosystem.”
The station Pantera Capital reflects connected FTX concern and value of DeFi successful latest Blockchain Letter update appeared archetypal connected CryptoSlate.
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