Multicoin: Overly trusting FTX led to holding too many assets, still believing in Solana

ChainCatcher news, the two partners of the crypto investment fund Multicoin, Kyle Samani and Tushar Jain, released a letter to investors on Thursday, disclosing the fund's situation and their views on the market. Multicoin stated that the collapse of FTX and the resulting downturn have caused Multicoin's asset size to drop by 55% this month. They had too much trust in their relationship with FTX, leading to an excessive amount of assets on FTX. Typically, Multicoin trades on three exchanges: FTX, Coinbase, and Binance. Now, aside from the assets on FTX, 100% of their assets are either on Coinbase or in self-custody wallets.

Additionally, Multicoin indicated that the cryptocurrency market will not turn positive quickly, expecting that the impact of FTX/Alameda in the coming weeks will lead to more crypto companies collapsing, which will put more pressure on the liquidity and trading volume of the entire crypto ecosystem. As other companies linked to FTX seek emergency funding, they hope to purchase mispriced assets at more attractive valuations.

Multicoin still believes in Solana, which has "one of the most active developer communities." Based on their experiences in 2018 and 2020, they believe that if the core thesis is not impaired, it is unwise to sell assets during a short-term crisis. (source link)