CoinFund Liquid Opportunities LP Losses: Investors May Have Options

In July 2023, US-based cryptocurrency investment firm and registered investment adviser CoinFund announced that it had closed its $158 million Seed IV Fund LP. According to a press release, the fund “was backed by a series of institutional investors, family offices, and high-net-worth individuals,” surpassing CoinFund’s initial goal of $125 million, and will reportedly support “pre-seed and seed stage investments” in the web3 space. As a report by TechCrunch described, the news illustrates CoinFund’s strategy of “doubling down” on crypto investments “as other venture capitalists veer away from the crypto world.” Recently, however, an investor in one of CoinFund’s other products has suffered significant losses.

CoinFund’s offerings also include the hedge CoinFund Liquid Opportunities Onshore LP. the company’s website describes it as “one of the world’s first cryptonative investment firms.” It was founded in 2015 and has 105 portfolio companies and six investment vehicles. The firms in its portfolio include Polygon, Worldcoin, Zapper Socket, Republic, Opyn, Holaplex, Claystack, and API3.

As Investopedia explains, cryptocurrency is a digital asset on a distributed network whose decentralized nature allows the currency “to exist outside the control of governments and central authorities.” Popular examples include Bitcoin, Ethereum, Tether, Binance Coin, Litecoin, Dogecoin, and Cardano, per Bankrate. Investments in cryptocurrency, like many investments, have both pros and cons. Pros include the decentralized systems, enabling “cheaper and faster money transfers,” while the disadvantages include the extreme volatility of the currencies. In just 18 months, for instance, Bitcoin fell from $65,000 to $20,000. Some argue that cryptocurrencies are a bubble. As with all investments, it’s important for investors to carefully examine the risks and features associated with crypto-related products, ensuring that the products are not unsuitable for their profiles. Brokers and financial advisors who misrepresent and/or recommend unsuitable crypto investments may be liable for damages.

Carlson Law represents an investor whose CoinFund Liquid Opportunities investment is down 68 percent. Our firm is investigating brokers who sold investments in the edge fund. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.