- Reports suggest notices related to shut down were sent to investors in October.
- The shut down will reportedly be done by the end of 2022 or Q1 of 2023.
- The move came as the crypto sector is cutting down costs due to the economic crisis.
As per latest reports, crypto hedge funds investor, Protocol Ventures LP, will shut down and return cash due to the consistent crypto market slump.
According to people familiar with the matter, the US-based firm has begun the formalities of the shutting down process. In fact, at the end of October, notices were sent to investors informing them about this decision.
One of them also revealed:
The shut down will reportedly be done by the end of 2022 or the first quarter of 2023.Furthermore reports also suggest that hedge funds investors of Protocol Ventures may have borne a massive loss of nearly 90% over the past year. However, there has been no official confirmation reading this development as of yet and Protocol has refused to comment about it too.
Protocol Ventures has invested in crypto asset investment firms like BlockTower Capital, Electric Capital., Multicoin Capital, and Pantera. The move to shut the firm came as the crypto sector is cutting down costs due to the economic crisis.
Crypto hedge funds saw a boom in 2021 during an outburst in speculative investments caused due to the phenomenon of ‘liquidity injections’. Liquidity injections were taken up to handle the worst of the pandemic.
But the boom came to a gradual stop after central banks all around the world hiked interest rates to combat inflation. Infact, the hawkish stance of the policies toughened financial conditions and made investors restrict their risky investments.
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