Multicoin Capital’s annual investor letter shows that the firm’s hedge funds will lose 91.4% in 2022. The letter attributes last year’s losses to cryptocurrency volatility and the direct and indirect effects of the FTX crash. In a separate letter to investors last November, Multicoin detailed its hedge fund’s financials, revealing that the fund had 10% of its assets trapped in FTX, as well as exposure to large amounts of FTT, SOL, and SRM. All of these tokens suffered a sharp sell-off in November last year. Multicoin Capital launched a hedge fund strategy in October 2017 investing in liquid tokens. The firm also runs three venture capital funds and has invested in FTX. Despite a sharp drop in the last year, Multicoin's hedge fund is still up 1,376% net of fees from its inception to the end of 2022. As the encryption market rebounded this year, the Multicoin fund rose 100.9% in January 2023, and its return rate from its inception to January this year reached 2866%. Multicoin stated that it still adheres to its long-term strategy and has no plans for short-term speculative operations.