Business News Asia
Multicoin Capital, a U.S.-based cryptocurrency company, sent a letter to investors on Thursday (Nov. 17) that FTX’s bankruptcy and the slump in crypto prices have reduced Multicoin’s capital. This month, Multicoin’s capital has dropped by 55%.
Multicoin explains that while there is a possibility that the company will get some money back from FTX. But since these assets are now included in FTX’s bankruptcy proceedings, that makes the hope of getting the money back around zero. This will affect the capital base of Multicoin, which has been in the crypto business for 5 years.
As of last July, the company had a capital base of $430 million, making it the third-largest crypto company.
Multicoin predicts that the crypto market will not recover anytime soon, as there will likely be more bankrupt companies in the wake of the sudden collapse of FTX and its subsidiaries, Alameda Research.