Sino Global Capital suffers losses due to FTX collapse
A crypto fund that previously invested in FTX has confirmed financial losses. The corresponding statement was published on the company's Twitter account on November 15.
Sino Global Capital was one of the companies participating in the largest private equity round for FTX Trading in 2021. Amid the events of the last week, the strategic partner of the bankrupt crypto exchange was quick to provide up-to-date information to its clients and, if possible, reassure them.
Sino Global Capital stated that investments in FTX shares were limited to seven figures and were made before the fund launched in October 2021. Thus, nothing threatens the Limited Partner capital.
The foundation "deeply regrets the misplaced trust" in FTX, but continues to operate as usual, with a focus on blockchain infrastructure and gaming projects.
«Over the course of the last five days, we have been solely concentrated on two things: protecting our LPs and working with our portfolio companies, many of whom have never experienced periods of such intense volatility», — the statement says.
A balanced distribution of investments between ecosystems and the absence of potentially dangerous tools and techniques, including leverage and short-term trading strategies, made it possible to guarantee stability for the fund's clients.
Despite the volatility inherent in the market in 2022, Sino Global Capital does not lose confidence in the prospects of Web3. The company is confident that the sphere will be able to go "a long way to recovery" and continue to develop with new technologies and participants.
«Our thesis has not changed - we believe blockchain technology to be the most important innovation since the advent of the Internet. Going forward, we will continue to seek out and support exceptional teams building the future of our industry».
November 2022 was marked by the collapse of one of the recognized market leaders - the FTX crypto exchange. U.S. regulators and law enforcement are investigating the platform, which filed for bankruptcy on November 11.
