Venture capital giant re-enters crypto market with substantial bet on bitcoin and ether
In a significant move reflective of renewed interest in cryptocurrency markets, Founders Fund, the venture capital firm founded by billionaire Peter Thiel, has re-entered the crypto sphere with a $200 million investment in bitcoin and ether. Here’s a closer look at this noteworthy development:
Founders Fund’s Crypto Comeback:
Founders Fund allocated $200 million to acquire crypto tokens, evenly split between bitcoin and ether, from late summer to early fall last year.
The move underscores institutional investors’ return to the crypto landscape after the market slump of 2022, signaling renewed confidence in digital assets.
Resurgence Amid Market Recovery:
Despite the challenges faced in 2022, bitcoin and ether prices have been gradually recovering over the past year, with bitcoin recently surpassing the $50,000 mark.
Founders Fund’s strategic investment reflects growing optimism about the future trajectory of cryptocurrency markets.
Peter Thiel’s Crypto Affinity:
Peter Thiel, co-founder of PayPal and Palantir, has long been an advocate for bitcoin, viewing it as a store of value and a hedge against central banks’ monetary policies.
Thiel’s libertarian views and enthusiasm for technological innovation align with his support for cryptocurrency.
Founders Fund’s Track Record:
Founders Fund has a storied history in the crypto space, having been one of the earliest institutional investors in bitcoin back in 2014.
The firm’s recent investment, coupled with the addition of Joey Krug as a partner focusing on crypto investing, underscores its commitment to the burgeoning sector.
Industry Impact and Future Outlook:
Founders Fund’s re-entry into crypto markets could pave the way for increased institutional involvement, potentially fueling further growth and innovation in the sector.
The move comes at a time of evolving regulatory landscapes and shifting market dynamics, highlighting the resilience and adaptability of the crypto ecosystem.
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Credit: Anna Tong iand Krystal Hu