Multicoin says it will remain committed to crypto investments,HYPE is its hedge fund's largest holding

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Bloomberg interview Multicoin: Will not follow the trend of investing in pure AI, believing in its own advantages in the crypto sector

BlockBeats reports,October 19, as many crypto venture capital firms expand their investment scope into artificial intelligence (AI) areas, 2700000000 USD in assets under management Multicoin Capital has instead chosen to “go against the current” and remain committed to digital assets. Its general partner and co-head of venture capital, Spencer Applebaum, recently explained the core rationale behind this strategy in detail in an interview with Bloomberg.

Facing the industry's difficulty in raising new funds as AI competes for capital, Applebaum said: “We believe we have an advantage in crypto, and we want to remain loyal to this sector.”

Applebaum said that competitors such as Paradigm have expanded their mandates to cover AI and robotics, but Multicoin will not follow suit. This is because AI, which has never made purely Multicoin investments, would lose the advantage it has in crypto if it pivoted now.

Applebaum emphasized that the firm's track record and extensive network make it one of the first investors crypto entrepreneurs approach.

Regarding the currently hyped “crypto+AI” concept, Applebaum expressed his skepticism bluntly: “To a large extent, people are looking for a problem that does not exist at the intersection of crypto and AI. Many investors are trying to force it.”

In addition to holding its ground, Applebaum also addressed outside attention to the slower deployment pace of its 2022 fund. He attributed this to the market environment following the collapse of crypto exchange FTX: “Throughout 2023, most seed financings we saw had post-money valuations of around 30000000 USD and sizes of approximately 3000000 USD. When deploying a 422000000 USD fund into this type of round, it naturally takes much longer to deploy capital.”

In addition, Applebaum disclosed that Multicoin's commitment to digital assets is also reflected in its hedge fund that directly purchases cryptocurrencies. He confirmed that the fund's largest position is the token HYPE associated with decentralized derivatives exchange Hyperliquid, all of which were purchased on the open market. Although he declined to disclose the specific position size, he emphasized that Multicoin typically holds publicly traded assets for years, rather than days or weeks.

Original link https://m.theblockbeats.info/flash/372590

Key points

Multicoin Capital General partner and co-head of venture capital Spencer Applebaum was interviewed by Bloomberg.
The report said that Multicoin Capital manages 2700000000 USD in assets.
Applebaum said Multicoin will not follow competitors that have expanded their investment scope into AI and robotics.
Applebaum said that Multicoin has never made purely AI investments and believes it has an advantage in crypto.
Applebaum attributed the slower deployment pace of the 2022 fund to the market environment following the collapse of FTX.
Applebaum said that in 2023, most seed financings had post-money valuations of around 30000000 USD and sizes of approximately 3000000 USD, while the relevant fund was sized at 422000000 USD。
Applebaum confirmed that the largest position in Multicoin's hedge fund is the token HYPE associated with decentralized derivatives exchange Hyperliquid, all purchased on the open market.
Applebaum declined to disclose the specific position size of HYPE, and said Multicoin typically holds publicly traded assets for years rather than days or weeks.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Multicoin believes its advantage lies in crypto investing and therefore does not plan to shift to pure AI projects simply because AI is popular. It also disclosed that HYPE is the largest holding in its hedge fund, but did not specify how much it holds.

Why it matters to readers

purchased on the open market. This reflects Multicoin's publicly stated investment scope and holding preferences, and may lead the market to watch whether it continues to focus on crypto and whether its HYPE position changes.

Beginners should understand “largest position” as the relatively largest holding within the fund; it does not mean that the purchase amount has been disclosed, nor does it mean the token price will necessarily rise.

Risks and unknowns

The evidence is BlockBeats' account of the Bloomberg interview; no original Bloomberg interview link was provided.
Multicoin The specific position size of HYPE was not disclosed.
The purchase timing, cost, or plans for subsequent increases or reductions in the HYPE position were not disclosed.
The evidence states only “October 19,” and does not explicitly specify the year in the body text.

Multicoin says it will remain committed to crypto investments,HYPE is its hedge fund's largest holding

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