The crypto sector has begun to attract attention as investors anticipate Bitcoin surpassing the $40,000 mark. This expectation has also created fluctuations in other digital currencies. Amid this resurgence, the C1 Fund, equipped with a $500 million fund, is strategically observing secondary shares with discounts of up to 80%.
Established by former Coinbase lawyers and investors, the C1 Fund aims to target leading crypto organizations to purchase secondary shares from investors. Focusing particularly on crypto companies that enter their latest financing round with a valuation of at least $300 million – especially those in Series C or later – the fund plans to issue checks ranging from $20 to $50 million.
By leveraging market conditions, hyperinflation, and rising interest rates to its advantage, the C1 Fund sees the maturity of the digital asset market and the current time as favorable for attractive valuations in the secondary market. The fund is committed to acquiring shares with significant discounts by taking advantage of the current market dynamics.
Animoca Brands, once listed on ASX and based in Hong Kong, has caught the eye of the C1 Fund, and it is alleged that the fund has offered to purchase shares at a substantial discount based on the company’s last valuation. Additionally, the C1 Fund aims to make significant discounts in companies like U.S.-based Chainalysis, which was valued at $8.4 billion in 2022.
Local crypto exchanges Independent Reserve and BTC Markets are witnessing an influx of customers due to money laundering allegations against the founder of Binance. With a trading volume increase of up to 50% compared to Binance, these locally regulated operators are becoming the preferred choice. Investors are anticipating a potential crypto renaissance with the possibility that U.S. regulators will approve a Bitcoin ETF in January. Such approval could allow Wall Street players to market their funds to a broader investor base. This flow could offer even more growth opportunities to the crypto space.
