Selling Bitcoin doesnt mean youre not bullish: Cypherpunk CEO

Despite the massive wave of liquidations in the cryptocurrency market, some of the companies that have sold off cryptocurrencies over the past few months are not at all bearish on Bitcoin (BTC).

Canada-based investment firm Cypherpunk Holdings is one of the companies opting to sell cryptocurrencies in the 2022 crypto winter, liquidating 100% of its Bitcoin and Ether (ETH) by June. Did. Cypherpunk, one of the world’s first publicly traded companies to invest in bitcoin, maintains a long-term “bull outlook on cryptocurrency” despite selling all digital coins at the time. said there was.

The liquidation of Cypherpunk’s cryptocurrency may seem a bit odd, as the company’s shares are listed on the Toronto Stock Exchange under the ticker symbol HODL. This acronym is widely used in the crypto community to refer to Hold On for Dear Life, or the bullish strategy of holding Bitcoin regardless of market conditions.

According to Cypherpunk CEO Jeffrey Gao, crypto investors can sometimes cash out and remain bullish.

We are in this business because we are bullish on cryptocurrencies in the long run, Gao said in an interview with Cointelegraph. It can return and they are “certain opportunities” the company is actively pursuing, said the CEO.

Gao said the industry saw forced liquidations as even “probably the most sophisticated” institutions such as Voyager, Three Arrows Capital and Celsius were involved in businesses that “completely lacked risk management.” Stated. According to the CEO, non-existent or almost non-existent risk management is what really distinguishes the cryptocurrency industry from more mature ones. Mr. Gao added:

Looking forward, while being long-term bullish, that mindset on risk management is very important. […] You can be bullish on cryptocurrencies, but they can still sell out of the market.

According to Gao, Cypherpunk began the liquidation process in early May, just before the Terra network collapsed, and on May 10, algorithmic stablecoin TerraUSD (formerly UST) lost its US dollar peg. He at risk is 30% or 40%. “It was probably sometime in June when we took out the last third of him,” Gao said.

Related: Elon Musk: US ‘Historic Peak Inflation’ After Tesla Sells 90% of Bitcoin

We basically made no progress, but we also avoided a lot of capital destruction, Gao said. He went on to say that he remains very optimistic about altcoins like Ether and Solana (SOL), despite some issues with the Solana ecosystem in early August.

Long-term, at least for now, I will be conservatively bullish on Bitcoin over other tokens. I’m here.