Pantera Capital’s Liquid Token Fund has reportedly achieved a remarkable 66% return in the first quarter of 2024. This success can be attributed to the fund’s investments in various crypto tokens, including Solana’s SOL. Additionally, assets such as Ribbon Finance (RBN) and Stacks (STX) have also contributed to the fund’s strong performance during the January to March period. However, the fund’s exposure to Bitcoin (BTC) and Ether (ETH) decreased during this time.
Cosmo Jiang, the portfolio manager, revealed that the fund has significantly reduced its Bitcoin holdings since the beginning of the year. Jiang expressed his satisfaction with the gradual decrease in the Bitcoin position each month. Notably, data from TradingView shows that the RBN token has risen by an impressive 400.43% year-to-date, while SOL’s gains stand at 69.88%. Both tokens have outperformed Bitcoin, which has appreciated by 62.59% in 2024.
The Pantera Liquid Token Fund was launched in November 2017 and focuses on a pool of 10-20 liquid tokens. The fund is designed for accredited investors who are willing to commit a minimum of $100,000, with a primary focus on decentralized finance (DeFi) tokens.
Pantera Capital, with assets under management totaling $5.2 billion, is an early investor in the cryptocurrency space. Recently, the firm raised approximately $250 million to purchase SOL tokens from former crypto exchange FTX. These tokens were acquired at a price of $64, which is approximately 60% below the current market price.
The rise in SOL’s price performance can be attributed to its increased blockchain market dominance and the frenzy surrounding memecoins. Notably, on April 3, popular memecoins such as Dogwifhat and Bonk continued to gain popularity, along with the recently launched Cat in the Dogs World and Book of Meme. Institutional investors also showed their confidence in SOL by investing nearly $25 million in SOL-based investment funds in March, further supporting the token’s price rise.
In conclusion, while investing in Solana memecoins can be enticing, it is important to be aware of the potential dangers associated with such investments.