Polychain is a crypto hedge fund run by former Coinbase employee Olaf Carson-Wee. The fund is regarded as the largest crypto hedge fund, with a commitment “to exception returns for investors through actively managed portfolios.”
This announcement is the second time the fund has received funding, with the first time being a $10 million inject from Andreessen Horowitz and Union Squares Ventures back in December of 2016.
Despite the little bit of information Polychain Capital told Axios in their newsletter, the report filed to the SEC gleams even less information.
Section 5 of the form (Form D) filled out talks about Issuer size, which Polychain capital declined to disclose. Sections 13,15, and 16 (offering and sales amount, sales commissions & finder’s fees expenses, and use of proceeds respectively) all were marked with no estimate given.
The full document can be viewed publicly here but the SEC has stated that the information in this filing has not been received yet, and therefore may not be accurate and complete.
What’s more significant than the lack of information in this announcement is the timing of it: during a huge crypto bear market which has seen market civilization tank by $700 billion.
During a time where companies like Steemit are laying off over 70 percent of their staff, with other companies like ConsenSys and SpankChain following suit, Polychain is doing the exact opposite. There’s nothing revolutionary about what Polychain is doing; buying at a low and waiting for the last bounce back to sell at a higher price to enjoy appreciated values.
With mainly the entire market at a 50 percent (or more) discount, even if crypto returned to baseline price, Polychain and its investors would be rewarded handsomely.
It also shows that despite the overall negative sentiment that people may have regarding the market currently, there are still plenty of people that are willing to put their money where their mouth is and continue to invest in the industry.
However, there’s a chance that bitcoin surges up once again as well: the digital currency typically goes through a boom and bust cycle, with extreme valleys and peaks.
And if this situation is real, Polychain, as well as other investors that spend this time accumulating, will see their efforts paid off when crypto is bullish once more.