The ongoing crypto winter has caused venture capital firm Tiger Global to sell hundreds of thousands of altcoins entrusted to investments.
Tiger Global has disposed of this altcoin
The crypto winter since early 2022 has prompted investment giant Tiger Global to reconsider its relationship with the crypto space. Since the beginning of 2023, Tiger has sold hundreds of thousands of altcoins to recoup his investment and save cash. Its most high-profile investment, Braintrust (BTRST), has cost the venture capital firm millions of dollars.
Braintrust, a blockchain-powered recruitment platform, was one of Tiger Global’s previous investments in private technology firms in 2021, Fortune reports. In exchange for the investment, the venture capital firm received millions of Braintrusts (BTRST) instead of buying shares in the crypto startup.
BTRST token serves as the currency of Brainstrust. Also, the platform rewards users with cryptocurrency. In addition to giving the tokens to Tiger, Braintrust also sold a substantial sum to the VC giant. The sale included a multi-year lockdown deal to prevent Tiger from selling the tokens and lowering their price.
Braintrust (BTRST) investment initially bore fruit
Tiger Global 2021’s bet on Braintrust during the bull run initially paid off. The cryptocurrency market was in a bull market during this period, which carried Bitcoin to $ 70,000. Especially VC investors showed great interest in the market.
However, the collapse of crypto giants like Terraform and FTX in 2022 triggered a market-wide sell-off. This, in turn, has led to prices falling and the ongoing crypto winter. Crypto market capitalization has dropped by 70%. cryptocoin.comAs we have mentioned, the process of judging the founders is still ongoing.
The decline prompted Tiger Global to hire institutional investment firm FalconX to sell hundreds of thousands of BTRST. According to on-chain data reviewed by Fortune, wallets associated with Tiger Global have been selling tokens since January 2023 in an attempt to calm their limited partners.
Sales hurt the price of BTRST, which has lost more than 20% of its value this year. Braintrust co-founder Adam Jackson expressed confidence in his firm’s crypto-based strategy. Jackson argued that the fall in the price of BTRST had no effect on the utility of his platform.
What is Braintrust (BTRST)?
According to the Messari text, Braintrust is a decentralized talent network that connects employees with the world’s leading companies. Operating on Ethereum, Braintrust is managed by knowledge workers who use the network. In this way, the network replaces a central company while serving the interests and needs of users.
The Braintrust project was founded in 2018 by Freelance Labs’ Adam Jackson, Luna-Ostaseski and Brian Flynn. In October 2020, Braintrust raised $25 million from new investors. Its supporters have included Pierre Omidyar, Shervin Pishevar, Pantera, Multicoin and Variant. The funding round was led by ACME and Blockchange.
