Chief executive of the fund, Dan Morehead, has stated that despite the bigger part of the startups in Pantera Capital’s portfolio will remain unaffected, one in four initial coin offerings might be rendered as securities in accordance with the US regulations. Should the Securities and Exchange Commission deem them so, the impact on said ICO startups might be adverse. Among such startups nearly 10% of portfolio is up and running, even though they were technically able to proceed with no further advancement, terminating development would obstruct its progress.
Earlier this spring, Pantera Capital was reported to have more than 1 billion USD in its fund as the pioneer billion-dollar hedge fund in the digital currency market. Back then, the fund’s CEO revealed its first major investment to be in ICON, the biggest blockchain project in South Korea. Apart from that, Morehead stated that approximately 10% of Pantera’s funds are contributed to BTC.
Nevertheless, from the beginning of the year, there has been a significant drop in value of initial coin offerings and tokens. The aforementioned ICON recorded a 98% drop, going from its 4.4 billion USD high all the way to 89 million dollars.
The majority of initial coin offering startups and blockchain platforms has dropped by 95-99% versus the USD over the past year, dominantly because of the rising regulatory pressure on the part of the US SEC and the difficulties faced by dApps in the face of mass adoption.
Paragon, another project in Pantera Capital’s portfolio, has already reached an agreement with the Commission, pioneering the registration charge settlement for the cryptoindustry. The project was demanded to register its token as a security, pay fines and submit reports to the Commission periodically.