Investment fund says prices and fundamentals have diverged more than ever in past 10 years.
The investment fund said that, in the current market cycle, prices and fundamentals have diverged more than they have at any point in the past ten years.
M31 Capital's launch of a new investment fund dedicated to Web3 companies signals a shift in the industry toward decentralized internet projects. This move underscores the importance of these projects in the eyes of investors and highlights the potential for growth in this area. With more investment flowing into Web3 companies, we can expect to see even more innovation and progress in the development of the decentralized internet.
The M31 Capital Web3 Opportunity Fund is a great way to invest in the future of the decentralized internet. With a $100 million fund size, this fund will be able to invest in a variety of projects building the infrastructure for the web3. Additionally, the fund's structure as a "liquid venture fund" will give investors the ability to cash out after only a 12-month lock-up period. This is a great way to get involved in the web3 space and support the development of this crucial infrastructure.
M31 is on track to raise a total of $100 million for its latest fund, with $50 million already committed by investors. The company plans to use the money to invest in a variety of startups and businesses, with a focus on those in the tech industry.
Despite the current bear market in cryptocurrency, there is still a lot of interest from investors in Web3 projects. This is evident from the number of investment funds that have been set up this year dedicated to Web3 projects. According to Cointelegraph Research, Web3 projects have been the focus of venture capital investment in the blockchain space this year. In the second quarter alone, Web3 projects accounted for around 42% of all individual venture deals. This shows that investors believe there is still value to be found in these projects despite the current market conditions.
It is clear that crypto markets are highly correlated with traditional equities markets. This suggests that any short-term pain experienced by the crypto sector is likely to be felt by traditional markets as well. This could cause investors to reconsider their portfolios and make changes accordingly.
Nathan Montone, an early Bitcoin (BTC) investor who founded M31 Capital in 2016, said the current crypto market cycle is the first time in ten years that “price has trended down while fundamentals and revenue growth are hitting all-time highs nearly every day.” This is a unique situation that we are seeing in the crypto markets, and it is one that is worth paying attention to. What we are seeing is that despite prices trending down, the fundamentals and revenue growth of the space are hitting new all-time highs.