Pantera Capital Has Secured $125 Million for Its Third Cryptocurrency Venture Fund

Francisco Memoria

Pantera Capital, a cryptocurrency hedge fund, has reportedly secured $125 million for its third cryptocurrency venture fund, which is set to invest in companies that have been in the crypto space for a while, instead of focusing on startups.

According to CoinDesk, Pantera Capital has only secured $25 million since August of last year, as it told CNBC at the time it had already raised $100 million. Paul Veradittikit, a partner of the hedge fund, justified that fundraising is now hard for the entire industry, presumably because of the bear market.

Per Veradittikit, Pantera’s initial funds came from high net-worth individuals and family offices, as well as others that could move their money quickly. Pantera has reportedly been “taking a lot of meeting” with institutional investors such as endowments and pensions funds, which has seen Veradittikit remain optimistic.

He was quoted as saying:

It’s a great time to be investing. I think we have an opportunity here to be investing in companies with good valuations and great teams and that will be around a long time.

Pantera Capital’s new fund is now set to focus on investing in “later stage rounds to support the more mature companies” in the space. This approach, Pantera’s partner stated, is set to allow the firm to take an active role in growing companies, and it’s even eyeing board seats.

Specifically, the fund has a goal of investing between $3 to $8 million for equity stakes of as much as 15% in follow-on funding, and between $1 and $3 million for equity of 10% to 20% at the seed stage.

Pantera’s first two funds have invested in 44 companies, and the third one is now set to support 30 to 50 firms. The hedge fund has notably invested in Bakkt, new Intercontinental Exchange’s venture into the cryptocurrency space.

The firm’s co-chief investment officer, Joey Krug, has last year claimed the next cryptocurrency bull run could see the cryptocurrency space see a 10x increase. Pantera Capital has notably claimed bitcoin will reach $67,500 by the end of this year. As CryptoGlobe covered, the hedge fund was down 73% for the year back in October of 2018.

Neutral Dollar Stablecoin Founder Explains How to Access Shared Liquidity Pools

Matthew Branton, the Founder and Chief Technology Officer at Neutral, a smart contract-enabled platform that provides various financial instruments for the cryptocurrency industry, has predicted that stablecoins will have “a tremendous impact on the future economy.”

Branton, a computer science graduate from Lafayette College, told CryptoGlobe that stablecoins offer “access to a digital currency that can enable payments, credit, and banking services which many people don't have access to.”

According to Branton:

[Stablecoins are] innovative digital assets [that] will help lower the barriers for [major financial] applications and [they will also] help people transact in value [systems] they are familiar with, such as the USD [and other fiat currencies.]

“Cultivating Healthy Dialogue to Help Build Wider Understanding” of Stablecoin Market

In response to a question about how the traditional financial system could be upgraded (in terms of both the regulatory framework and technological infrastructure) so that it can allow users to legally acquire stablecoins and other digital assets, Branton remarked:

In order to ensure that regulation evolves in tandem with advances in financial technology (FinTech), dialogue between regulators and innovators is essential. Cultivating a healthy dialogue among fintech project [developers], stakeholders and regulators of traditional finance will help build wider understanding of the benefits of stablecoins, and in turn accelerate the creation of regulation and infrastructure that accommodates stablecoins in the global economy.

Neutral Dollar Aims to Provide “Diversified Exposure” to Investors at “Lower Risk”

When asked what unique value proposition the Neutral Dollar stablecoin offers, which may not currently be available in the cryptoasset market, and how this is supposed to be relevant and useful, Branton said:

The Neutral dollar provides diversified exposure, presenting a lower risk alternative against other stablecoins (which contrary to their name, may not exhibit stability) in the market. In addition, the Neutral Dollar functions in a way that creates an additional layer that allows for shared liquidity amongst constituents stablecoins, a property that isn't inherent in their design. Given the fragmented and nascent nature of the crypto market structure right now, this solution is particularly relevant and unique in the marketplace.

Responding to a question about the potential impact he expects his company’s line of products to have on the cryptoasset market, Branton stated:

The impact of our products is to not only give end-users a better means to invest, trade, or hedge cryptoassets, but to also facilitate liquidity and engage in better portfolio management practices through our products. In order for the digital asset space to reach its full potential, the industry needs reliable financial instruments that take us beyond the limitations of fiat currencies, while also upholding the highest standards in stability and transparency. In the longer term, we plan to explore the launch of a suite of financial products to improve market infrastructure and activity.

Digital Asset Security Is “Quite Solid”

Commenting on how we can ensure the security of our assets, including stablecoins users might acquire, since the technology used to transact in these assets is highly technical, Branton noted:

Given that collateral is on-chain and smart contract based, security is decentralized in nature and quite solid. Asset safety is still the responsibility of the end-user — crypto-storage extends beyond the case of stablecoins and Neutral Dollar itself.

He added: “Ultimately, once a Neutral Dollar token is deployed on smart contract networks, it will function completely autonomously. The math and algorithms that govern its operation will operate independently of a centralized entity and in a transparent manner, and provide continuous services on the network.”