The recent announcement of the difficult financial situation of FTX and Alameda has sparked strong reactions within the crypto industry. Among the major players affected, Pantera Capital, a major investor in the space for a decade, responded proactively to assess the potential damage to its portfolio.
The founder of Pantera Capital said: “Following the announcement of the difficult financial situation of FTX and Alameda, we established a situation room to assess the extent of the impact on our entire portfolio. " This rapid response is a continuation of actions taken by Pantera in previous periods of volatility and crisis, such as the crypto winter of 2018, the Three Arrows bankruptcy, the LUNA crash, and other market crises .
The main objective of this crisis meeting was twofold: on the one hand, to identify all the potential risks arising from the situation of FTX and Alameda, and on the other hand, to offer support and assistance to the teams exposed to these risks.
Pantera Capital highlighted the importance of its proactive risk management practices, which helped limit damage to less than 5% of its portfolio teams. The process involved the careful identification of possible risks, whether related to custodians, counterparties or investments, followed by close collaboration with relevant teams to mitigate any additional exposure.
The founder also said, “We have worked with relevant teams to mitigate any additional exposure and create a plan for the future.” This proactive and coordinated approach has allowed Pantera Capital to weather this turbulent period with notable resilience.
Pantera Capital's experience in the crypto industry was crucial in minimizing the impact of the FTX collapse on its portfolio. This rapid and methodical response highlights the critical importance of proactive risk management in a volatile and constantly changing market.
And what do you think of this analysis?
