Monegro: Liquid fund structures force crypto managers to sell during market downturns
Joel Monegro · 20VC: Why Most The Value In Crypto Will Accrue in Governance, When Institutional Capital Will Enter The Space and How To Think About Liquidity In Crypto with Joel Monegro, Founding Partner @ Placeholder.VC · Jul 2, 2018 · at 19:00
Joel Monegro is Founding Partner at Placeholder VC. He outlines why traditional venture fund lockups protect crypto managers from panic redemptions during volatile bear markets.
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“A frenzy where there will be massive rises and massive falls, and when you have a more liquid fund structure, that can end up screwing you in interesting ways. If you're now bound by the whips of the market, if your investors can pull out of the fund because it is liquid and so on, when the market goes down, which is a moment when you should really be buying, you may be struggling to deal with investors who want to pull their money out, and so we wanted to go for the structure to insulate ourselves from the various market fluctuations and make Long-term investment decisions”
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