The goal of raising a 177.6 million USD fund by venture capital firm the Seven Seven Six of Reddit co-founder, Alexis Ohanian, is to invest in the crypto industry, especially in digital assets, The Information informs. The fund's code name is “Kryptós” and its primary focus is to invest in digital assets while the market is still volatile and has many perfect opportunities to enter. The Kryptós fund is going to invest in cryptocurrencies that are traded at more attractive rates, which were caused by the fluctuation in market prices.
Katelin Holloway, Founding Partner at Seven Seven Six said: “This is the best time to buy if you’re really long on the industry. It’s on sale. Everything is on sale.”
As of April 2022, Seven Seven Six’s registered as an investment adviser, which allows it to invest in cryptocurrencies. It is said that investors in the fund will be charged a 2.5% management fee, while also being able to earn up to 25% in interest. Additionally, the income can possibly rise up to 35%, if the fivefold or more return is gained by the Kryptós. The possible reason for the company to enter the crypto industry is that their beliefs are of the market to skyrocket back to the lost positions or higher in the future.
However, it is unclear how the future market situation will impact VC funding in the crypto industry and its impact on the crypto companies. Additionally, many already established companies have risen as the dominant entities in the crypto market such as Alphabet.
Reddit co-founder, Ohanian has already been involved in the crypto sector before, for example, launching an avatar marketplace with NFTs. Through this feature, users can obtain profile pictures based on the blockchain. The price of these NFTs is fixed and can be bought with fiat money, removing the need for cryptocurrency use. Moreover, partnering with the FTX crypto exchange allows it to integrate the Community Points across global markets.