Summary: Binance becomes a limited partner in Multicoin Capital Crypto Fund, which is the first time the crypto exchange has made an outside fund investment. In an extensive interview with Bitpush, Multicoin Capital spokesperson John Robert Reed revealed that their talks with Binance in regard to investment started late last year. Reed also responded that this ...
In an extensive interview with Bitpush, Multicoin Capital spokesperson John Robert Reed revealed that their talks with Binance in regard to investment started late last year. Reed also responded that this investment signifies Binance's trust in Multicoin Capital as fund managers.
"Binance is one of the most accomplished organizations in crypto. They are one of the fastest-growing teams in the space, and they continually push the pace of innovation. We're excited to work with them in a new capacity."
Reed also indicated that this is not the first time that Binance and Multicoin work together. "We have a great relationship."
"We've worked closely with Binance for several years in many different capacities. We started exploring the organization in 2018 for an essay we published in Feb 2019."
The essay he mentioned above was named "Binance Coin ($BNB) Analysis and Valuation" by Tushar Jain. Tushar Jain is the Manager Partner of Multicoin Capital, who leads Multicoin Capital's portfolio construction, risk management and manages the team.
In the report, Jain states that "we believe that Binance is the frontrunner in the race to be the world's dominant crypto exchange. We also believe that Binance's token, BNB, is dramatically undervalued, primarily because it is a novel asset with properties that many investors do not yet fully appreciate."
With respect to Multicoin's future investment, Reed stressed that "We will continue to execute on our fundamental-based, thesis-driven strategy."
The amount of the investment was not disclosed.
By Sara Zhang