By
Godfrey Benjamin
November 18th, 2022
Modular Capital is leveraging the crypto winter to invest in DeFi, NFTs, and other Web3 projects, and Multicoin wants to have a share in it.
The crypto market is set to welcome a new hedge fund called Modular Capital that has been able to raise $20 million during the bear market under the stewardship of James Ho and Vincent Jow.
Multicoin, LedgerPrime, and FTX’s ParaFi Capital are the project investors. The fund looks to revolutionize an industry reputed for dizzying volatility and meme coins by introducing deep fundamental analysis.
Other investors include the likes of Bobby Cho, Mable Jiang, and Brad Gerstner from CMS Holdings, STEPN, and Altimeter Capital supported the fundraiser.
James Ho and Vincent Jow highlighted Modular Capital’s entrance to the market despite the bearish sentiment.
According to Ho, Modular sees the negative market as an opportunity to buy durable tokens at cheap prices and capitalize on their staying power over the next one to three years. Per Ho, Modular is “ready to pounce” on the opportunities in the space.
The two Modular executives leverage their individual and combined histories; Ho from Altimeter and Quant Investment giant DE Shaw, while Jow brings his experience from New York’s Holocene Advisors.
Multicoin Taps Its $430 Million Fund in Support of Modular Capital
Modular Capital is leveraging the crypto winter to invest in DeFi, NFTs, and other Web3 projects, and Multicoin wants to have a share in it.
The current downtrend has caused an over 70% price drop across the market, and while many investors have pulled back, some see this as an opportunity to invest in anticipation of the next boom in the market.
Last week, the venture capital firm MultiCoin Capital announced a $430 million crypto fund dedicated to creator monetization projects, with DeFi, and NFTs as the focus.
Modular Capital is the first benefactor of this commitment from Multicoin to build richer experiences for users in the areas of Web3 gaming and the metaverse.
Modular Capital to Generate Incredible Returns
According to James Ho, while the firm will be looking to generate amazing returns, it will not use any leverage.
The decision comes as Modular Capital commits to learning from previous lessons in the market, including the collapse of Celsius and others in the current market cycle.
The firm has also committed to remaining vigilant in counter-party risk management.
In the area of investment, several metrics come to play on how Modular Capital will place bets. The considerations include the influence of foundational elements of individual crypto assets against their volatility.
However, the most important metrics depend on respective protocols, which would consider exchange trading volumes, staking protocol, and market share.
“It’s up to us to come up with relative metrics,” said Ho.
