Despite the bearish trend, the cryptocurrency market is still attractive for investment. Such an opinion in blog said the investment partner of hedge fund Pantera Capital Paul Veradittakit.
In his opinion, the bear market is “great” because companies are more focused on product development and investors are not looking for quick profits. In addition, a bear market is a “great time” to invest, says Veradittakit. According to him, investors can buy stocks, tokens or any kind of cryptocurrency cheaper.
“Liquid cryptocurrencies are really worthless right now, while private market valuations tend to lag,” he notes.
However, Veradittakit acknowledges that during a bearish trend, one should expect fewer large token purchases or investments in crypto startups due to lower investor demand for risky assets.
Veradittakit also noted that over the past two years, the number of transactions in the blockchain market has increased, which means that many mergers and acquisitions should be expected soon. Veradittakit advised blockchain startups not to spend money on marketing during a bearish trend, but to accumulate capital for a bullish growth phase.
Hedge fund Pantera Capital was one of the few investors in the Terra ecosystem that was able to withdraw most of the investments before the collapse. As found out media, the firm was able to cash out about 80% of its investment in Terra. At the same time, the withdrawal of capital was not lightning fast, but lasted throughout the past year. According to Veradittakit, the hedge fund was able to cash out about $170 million from a $1.7 million investment in Terra.
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