Seven Seven Six, the venture capital (VC) firm by Reddit co-founder Alexis Ohanian is planning to make its first direct entry into the crypto space, aiming to raise a $177.6 million fund.
The fund dubbed, Krypts’ will focus on investing in cryptocurrencies while citing the ongoing market volatility as a perfect opportunity to enter the sector, The Information reported on August 29.
According to the VC firm, the Krypts fund will primarily invest in cryptocurrencies that trade at more affordable rates following the slump in market prices.
“This is the best time to buy if you’re really long on the industry. It’s on sale. Everything is on sale,” said Katelin Holloway, Founding Partner at Seven Seven Six.
The entry into digital assets follows Seven Seven Six’s April registration as an investment adviser allowing it to invest in cryptocurrencies. Investors to earn 25% carried interest Related Former CFTC commissioner joins Andreessen Horowitz’s crypto team as an advisory partner
As per funding material, investors in the fund will be charged a 2.5% management fee making them eligible to earn 25% in carried interest. Notably, the returns will potentially surge to 35% if Krypts manages to record fivefold returns or more.
The VC firm’s entrance into crypto amid collapsing prices indicates the company is betting on the market to rally in the future. In line with this outlook, several, several crypto analysts maintain the prevailing market conditions are temporary and part of the growth trajectory.
Overall, it’s unclear how the ongoing market conditions will impact VC funding in crypto and blockchain companies. However, as reported by Finbold, investments in blockchain startups spiked over 600% in 2021, hitting $14.8 billion.
At the same time, established firms like Alphabet have emerged as leading entities betting on the crypto sector. Ohanians crypto inroads
It is worth mentioning that this is not the first time Ohanian has been involved in crypto since Reddit has made several inroads into the sector. For instance, the social media platform unveiled an avatar marketplace as part of its venture into the non-fungible token (NFTs).
Through the feature, users can buy blockchain-based profile pictures at a fixed price through credit cards, eliminating the need for owning cryptocurrencies.Furthermore, Reddit has partnered with crypto exchange FTX to integrate its Community Points across different global markets.
