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Pantera Capital CEO Dan Morehead posted a tweet late last night about the impact of the ongoing FTX situation and how Pantera underlines the importance of what they are building.
FTX emphasizes the importance of what we are building here: a more efficient, decentralized and open financial ecosystem.
As my Co-CIO @joeykrug The journey may not always be easy and smooth, but it is necessary.
This week’s thoughts: https://t.co/WH3YJLBeVD
Dan Morehead (@dan_pantera) November 11, 2022
Morehead’s statement is detailed in the latest update of Pantera’s Blockchain Letter. This is a monthly letter covering a variety of topics, primarily focused on and around the blockchain ecosystem.
The latest additions to the blockchain letter, updated by Pantera co-CIO Joey Krug on November 11, summarize the impact and permanent capital loss mitigation for FTX and Alameda Research.
Our approach to situations like this is primarily focused on protecting our portfolios as much as possible.
Pantera aims to minimize exposure to typically centralized counterparties while maintaining trading flexibility.
The company has addressed concerns over its exposure to FTX events, explaining that the main “risk/loss” is from the Blockfolio acquisition and is represented by FTT and FTX shares.
On Tuesday, November 8th, we liquidated this FTT as best we could. On the Monday night before the collapse, our FTX Equity and FTT Token positions were less than 3% of our total AUM.
Pantera speculates on possible regulatory response after quickly implementing precautionary measures in the wake of FTX and Alameda, but is “cautiously optimistic about positive results in the medium to long term” .
Reflecting the situation, Pantera emphasizes “the need for a decentralized trustless protocol that allows users to trade, hold and transfer assets without relying on entities such as FTX, Celsius or Voyager”. doing.
The need for a centralized intermediary was acknowledged in the Blockchain Letter, and such entities are likely to be subject to greater scrutiny of reserves, audits, and risk management. suggests that
On a personal level, the implosion of FTX is a reminder of what we are doing here. Our mission as a company and as an ecosystem is to Avoid repeating risks and inefficiencies: build a more efficient, decentralized and open financial ecosystem.
