Pantera Capital Voices Disdain for Crypto Winter, Says Its Been “Plenty Long,” as Fundamentals Are Disconnected


It is safe to say that the crypto winter that the industry has been going through has been painful and taxing to anyone involved. The value of Bitcoin has remained at lower levels since the end of 2017, and the rest of the altcoins have followed along.

Pantera Capital, which is an investment group that centers around cryptocurrency in the Bay Area, says that the fundamentals are still strong, even if the prices are low. The startup released its February letter to discuss what they believe the future of the industry holds.

Chief executive Dan Morehead said that, in many ways, the industry’s

“underlying fundamentals are much, much stronger than they were in the 2014-2015 crypto winter.”

He said the comment was basically due to the

“impending institutional wave of money”

that most experts believe is coming. The launches of the new products and exchanges like Bakkt, the crypto division of Fidelity, and ErisX should be considered progress and a catalyst for change, even if the prices do not show the same results.

Spencer Bogart of Blockchain Capital seems to agree with Morehead, based on his comments during an interview on Bloomberg TV. Bogart commented that there is plenty of innovation, talent, and capital in the crypto space and that the levels of this talent and interest have not disintegrated with the price of Bitcoin. Therefore, Bogart is confident that the ecosystem still has some life. He even added that considering all of the debt and globalism concerns, Bitcoin may end up being the

“most compelling asset in the world right now.”

Based on those details, Pantera believes that the market’s valuation of crypto assets is drastically disconnected from the fundamentals of the market. Going forward, the company is predicting that there will be major advancements in blockchain scalability since it is one of the few factors that is keeping platforms from reaching their best speed and performance.

The letter issued by Pantera this month follows reports from CoinDesk that they have managed to secure $125 million for a $175 million fund, and that their funding round is scheduled to end in March. The outlet says that the total amount came from individuals with a high net worth, family offices, and participants that

“could move money quickly.”

Since August, the company has raised $25 million, though a representative named Paul Veradittikit seems optimistic about the possibilities. While speaking with CoinDesk, Veradittikit said that there are meetings taking place between Pantera and institutional investors, especially investors involved in pension and endowment subsets that are looking for partners. Hopefully, these discussions will become something more serious, considering this opportunity to hold onto crypto assets while the market is on the cusp of revival.

Elaborating, Veradittikit said,

“It’s a great time to be investing… I think we have an opportunity here to be investing in companies with good valuations and great teams and that will be around a long time.”

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