Pantera Capital CEO, Dan Morehead, posted a tweet late final night time addressing the fallout of the continuing FTX state of affairs and the way it highlights the significance of what Pantera is constructing.
FTX underscores the significance of what we’re constructing right here – a extra environment friendly, decentralized, and open monetary ecosystem.
As my co-CIO @joeykrug writes: “The journey might not all the time be simple or easy, however it’s vital.”
Ideas on this week: https://t.co/WH3YJLBeVD
— Dan Morehead (@dan_pantera) November 11, 2022
Morehead’s assertion is elaborated upon within the newest replace to Pantera’s ‘Blockchain Letter’ — a month-to-month letter that covers a variety of subjects targeted totally on and across the blockchain ecosystem.
Up to date Nov 11 by Pantera co-CIO Joey Krug, the newest addition to Blockchain Letter summarizes the FTX and Alameda Analysis fallout and the mitigations of everlasting capital loss.
“Our method in the direction of conditions like these first focuses on safeguarding the portfolio as a lot as potential.”
Pantera goals to reduce “publicity to centralized counterparties usually” whereas guaranteeing that commerce flexibility is maintained.
Addressing the issues surrounding their publicity to the FTX occasion, the agency explains that their principal “threat/losses” are derived from their Blockfolio acquisition proceeds — denominated in FTT and FTX inventory.
“We liquidated as a lot of this FTT as potential on Tuesday, November eighth. Previous to the collapse, on Monday night time, our FTX fairness and FTT token positions totaled beneath 3% of our complete agency AUM.”
Having swiftly applied precautionary measures after the FTX and Alameda fallout, Pantera speculates the probability of a regulatory response — although they’re “cautiously optimistic it’ll yield medium- and long-term optimistic outcomes.”
Reflecting upon the state of affairs, Pantera highlights the “want for decentralized, trustless protocols that enable customers to commerce, maintain, and switch their belongings with out counting on entities like FTX, Celsius, or Voyager.”
The necessity for centralized intermediaries is acknowledged inside the Blockchain Letter, suggesting the possible occasion that such entities will probably be “topic to stricter oversight of reserves, audits, and threat controls.”
“On a private degree, the implosion of FTX has reminded us of what we’re doing right here. Our mission – as a agency and as an ecosystem – is to not replicate the dangers and inefficiencies in conventional finance. It’s to construct a extra environment friendly, decentralized, and open monetary ecosystem.”
