Steven Cohen’s Venture Capital Firm Finds a New Partner To Get Into Crypto
The hedge fund billionaire, Steven Cohen, is using his venture capital firm to join the crypto market. Cohen Private Ventures, which was created in 2010, has invested into Autonomous Partners. The company is a new hedge fund that is currently buying companies related to blockchain technologies, cryptocurrencies and equities.
Autonomous Partners is led by Arianna Simpson, which is an early cryptocurrency believer and also a venture capitalist. The firm was launched last December and has investors like the Coinbase CEO, Brian Armstrong, and Union Square Ventures and Craft Ventures.
According to the media, Cohen’s company declined to comment for the story, but the company had already made partnerships with Crystal Towers Capital before, in 2015.
Autonomous Partners Is Looking For Stable Investments In The Cryptocurrency Market
It is no secret that the crypto market is very unstable as it is new and still unregulated. Because of this, Autonomous Partners is focused on finding areas of investment that can be seen as long-term investments that will generate profit even when regulated instead of investing in short-term speculation like most people in the crypto market.
The owner of the company, Simpson, notes that the company has also decided a small but significant part of its funds to markets like Bitcoin and Ethereum. According to her, they are looking for what could be the “next generation” and these two are the most high-profile tokens in the market right now.
Among the main interests of Arianna Simpson are seeking to speed up financial transactions, privacy coins that anonymize ownership, companies seeking to address blockchain scalability issues and infrastructure. She has already invested in some companies like 0x, a protocol that allows the creation of customized decentralized exchanges that do not need a central management team to exist.
Simpson believes that many people want different things from the blockchain technology and some will actually thrive while others will not. Because of this, it is so important to choose the right ones.
Arianna Simpson Does Not Invest In Ripple (XRP)
There is a notable absence from the fund: Ripple. While XRP tokens are currently the third largest market in capitalization, Simpson has decided not to invest in them. This is especially because the Securities and Exchange Commision (SEC) may decide that they are, in fact, token securities and this will surely make Ripple lose value.
Also, she is worried about the level of centralization and regulatory concerns about the company. Other companies like Multicoin Capital have shown concerns that Ripple might be a security and that by being too centralized and Ripple owning most of its own tokens, XRP could be considered a security in the future.
Ripple has, obviously, argued that its tokens are not securities and that ownership of tokens do not give the company control, as the CEO Brad Garlinghouse has stated, but the situation is still very uncertain.
Partnership Comes During A Troubled Time For The Market
The partnership between the two companies has come amidst a troubled time for the crypto market. As there are a lot of projects appearing and not many of them were successful, the company has to be more cautious.
The image of cryptos and blockchain as being a panacea for the market is starting to dissipate. Many projects, like CryptoKitties, were very successful initially, but are having trouble to scale their operations.
Apple co-founder Steve Wozniak said that blockchain is a bubble just like the dot com bubble, but others, like Simpson, believe in the long term of this market. While still very nebulous, the market is being regulated little by little and this can bring some more safety to the investors.