One of the largest crypto hedge funds, Pantera Capital Management expressed their concern due to some of the projects they backed are at a high risk of being the SEC's next victims.
Following the actions from the Securities and Exchanges Commission (SEC) to several firms related to their ICOs, California-based hedge fund, Pantera Capital Management’s co-chief investment officers, Dan Morehead and Joey Krug expressed their concern.
They stated that 25% of the total blockchain and digital-currency projects the company invested in are with liquid tokens that sold to US investors without using regulation D or regulation S, thus they may be at risk to be the next “victims” of the SEC.
Quoting what they said in a newsletter, “If any of these projects are deemed to be securities, the SEC’s position could adversely affect them.”
Although around one-third of those projects are live, functional and don’t necessarily require further development, ending their development would undoubtedly obstruct their progress, both added as reported by Bloomberg.
One of the largest crypto hedge funds referred to Paragon Coin that just received a $250,000 fine from the commission last month, on which the CCO said, “We're all super proud of this achievement!”
Interestingly, just days after they received SEC’s penalties, both Paragon Coin’s and Airfox’s coin prices were reported to surge significantly.