Defiance Capital Reportedly raised $100 million for its Liquid Token Fund.
On Monday, The Block informed of that the crypto investment firm completed the first close of the new fund, citing “two sources with direct knowledge of the matter”.
Although nothing was said about this development from the company till the time of writing this news, but it seems that it has confirmed it. sharing News story on its official Twitter account, as shared by its founder, crypto investor Arthur Cheong wrote,
“Crypto typically peaks on unbridled optimism, bottoms on hopeless pessimism. There’s never been a better time to invest.”
Sources told the news outlet that the company raised “eight figures,” adding that the initial raise was less than $50 million.
The investors who decided to support the fund were reportedly “a good mix”, including crypto funds, family offices and some existing investors as well.
cryptonews.com has reached out to DeFiance for comment.
What is Defense Capital?
Established in 2020, DeFiance Capital is a web3– and crypto-focused investment firm, claim of “Many Successful Investments” DeFi, web3 gamingand infrastructure space.”
It also supported projects such as Come on, dYdX, lido, xi infinity, layer zero, offchain labs ,Mediation), and others.
However, it was hit by a huge blow from the bankruptcy of a crypto hedge fund three arrows capital ,3ac), but soon distanced itself from it, claiming to be a separate company operating independently.
As informed of In July last year, DeFiance Capital said it was “materially affected” and “prejudiced” by the liquidation of rival fund 3AC. It also claimed that CEO Cheong had “no visibility” on Three Arrows Capital’s financial statements or terms.
Soon after, in September, it was reported that the company was in the process of raising $100 million for a “Liquid Venture Fund” and by that time had already raised about half of the targeted amount.
‘Best opportunities are already liquidated’
There has been increasing talk about Liquid Tokens and Liquid Token Funds within the crypto sphere and for some time now.
pantera capital Launched its own Liquid Token Fund in 2017, Description of It is “a multi-strategy vehicle that typically invests in 10-20 liquid tokens at any given time.” It added that the fund is “primarily driven by a discretionary strategy” focused on DeFi and adjacent assets.
According To Head of Growth in On-Chain Liquidity Protocols bankerNate Hindman, “A liquid token is a smart contract that acts as an automated market maker by regulating the buying and selling of a single token along a predetermined price curve, with a single pool of collateral to back it. “
Therefore, the higher the reserve ratio of a liquid token, the greater its price stability, argued Hindon, adding that,
“This new form of automated liquidity has the potential to transform the way users tokenize digital goods, communities, ecosystems, and more.”
And many praised DeFiance Capital’s latest move, such as Adam Cochran, Partner Cinemain Ventures and contributor to several DeFi projects,
Meanwhile, The Block claims to have obtained a draft article written by DeFiance, which suggests the fund aims to acquire tokens that are trading below venture round valuations.
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