Director of Portfolio Improvement at Pantera Capital, Franklin Bi, has created a Twitter thread discussing portfolio preventative measures taken following the current FTX and Alameda Analysis fallout.1/ The previous few days have examined our {industry}, with fallout for months to come back.Here is an excerpt from a observe to @PanteraCapital founders / buyers re: impression to our portfolio & actions we took within the first 24 hrs.Hope it might assist different builders & funds navigate forward.⬇️— franklin (@FranklinBi) November 10, 2022The Pantera group “assembled a digital struggle room” to hold out an intensive threat evaluation of their early-stage portfolio, and to determine an motion plan set for instant implementation. Their two objectives had been:To determine potential dangers their portfolio groups could be uncovered toTo attain out to at-risk groups straight and provide help Aiming to quickly set up and perform these two objectives, Franklin emphasised that in occasions of disaster, “we should act and act rapidly.”Danger Evaluation & Identification5 major dangers had been recognized, three of which had been deemed pressing, based on Franklin. The 5 dangers had been:Counterparty threat: Excellent credit score publicity to FTX / Alameda; threat of defaultCustodial threat: Holding funds in FTX accounts; threat of funds being frozen or lostPrice volatility threat: Holding sure property, e.g., FTT, on stability sheet; threat of worth exposureInvestment threat: FTX / Alameda is a direct investor; threat of liquidation in unwind or sale processCustomer threat: FTX / Alameda is a buyer; threat of income lossUp to 70 portfolio firms had been recognized as having “probably important [and] pressing publicity”. Nearly all of this group consisted of centralized finance (CeFi) firms, decentralized finance (DeFi) protocols, and anybody who could maintain tokens of their treasury.  Pantera plans to proceed and broaden on this course of over the approaching weeks, and months.Day 1 FindingsAs much as 95% of the portfolio groups inside the preliminary outreach had little to no publicity to FTX or Alameda — this was partially attributed to proactive threat administration in addition to custody and treasury administration practices. Two early-stage groups recognized inside the remaining 5% had been flagged for having over 50% of funds locked on FTX, probably impacting their runway. Pantera mentioned it stays dedicated to serving to the 2 groups discover all accessible choices.An extra two groups have publicly disclosed their standing and are receiving assist from Pantera.  1/ We’re glad to share that Cega has acquired $13.6M USDC in funds from Alameda which covers 100% of Cega’s buying and selling publicity to Alameda & yield owed to this point. All customers with publicity to Alameda trades (Cruise Management, Genesis Basket, Supercharger vaults) can really feel safe.— cega 🥚 (@cega_fi) November 10, 20221) We have skilled a number of market cycles over the previous 5 years, and our focus has been and continues to be the identical – delivering an industry-leading service for buying and selling, storing, hedging, and managing digital property with a key deal with these core pillars.— Amber Group (@ambergroup_io) November 9, 2022Ultimately, the impression on Pantera is minimal and any publicity has been resolved swiftly and easily. With zero publicity to Alameda, Pantera’s FTX/FTT publicity is restricted to roughly 2% of the entire AUM because of their Blockfolio 2020 acquisition. Franklin closed his thread by saying:“We’re unshaken – and extra importantly, we’re right here to assist you nevertheless we will. Our battle scars are to your profit. Attain out to anybody on our group anytime.” Get an Edge on the Crypto Market 👇Change into a member of CryptoSlate Edge and entry our unique Discord group, extra unique content material and evaluation. On-chain evaluation Worth snapshots Extra context Be part of now for $19/month Discover all advantages

Source link