Cryptocurrency
Vulture Investor Feasts on Crypto Whales Seeking Quick Exits
Vulture Investor Feasts on Crypto Whales Seeking Quick Exits: As reported on Bloomberg, “When big investors commonly referred to as whales need to quickly or quietly get out of the cryptocurrency world, they often turn to Brian Estes. “Estes, 52, runs Off The Chain Capital LLC, a nearly $40 million fund that specializes in buying […]
Vulture Investor Feasts on Crypto Whales Seeking Quick Exits:
As reported on Bloomberg, “When big investors commonly referred to as whales need to quickly or quietly get out of the cryptocurrency world, they often turn to Brian Estes.
“Estes, 52, runs Off The Chain Capital LLC, a nearly $40 million fund that specializes in buying digital assets from people strapped for cash due to divorce, loss of income or other unforeseen circumstances. The Orlando, Florida-based firm typically picks up assets at more than a 50% discount, Estes said.
“The fund is in talks to purchase about 1% of crypto-payments processor BitPay from a motivated seller, and another stake in the crypto exchange Kraken. In March, Off The Chain bought 1% of Polychain Capital from a former employee. A year ago, Estes said it snatched up a stake in venture-capital firm Digital Currency Group from a holder who needed to settle a divorce.
“’We are fishing where no one else is fishing,’ Estes said. ‘What we do is to buy blockchain assets at fire-sale prices from motivated sellers.’
“And there are plenty of those even with crypto prices soaring again and sectors such as decentralized finance, or DeFi, reaching bubble-like extremes. In recent years, investors have sunk billions into hundreds of venture funds and thousands of projects and startups that can take years to mature, and are not easy to cash out from…”