Crypto Winter doesn’t stop DeFi spending spree

Forbes: While the crypto market has lost $2 trillion in value since November 2021, the venture arm of the $24 billion hedge fund run by Steve Cohen, the man who inspired the “Billions” TV show, last week announced it had invested in its fifth crypto company, a decentralized finance firm that provides data and trade execution services for institutions.

Though the $20 million round was led by billionaire investor Mike Novogratz’s Galaxy Digital, the investment marks Cohen’s latest in a string of bear market crypto deals and builds on his hedge fund’s past work in institutional private investing and private equity.

As institutions re-evaluate how they use—or don’t use—decentralized finance, Cohen’s continued involvement in the struggling $41 billion industry is notable, as is his firm’s decision to help build yet another bridge between crypto and large trusted companies.

“We talked to our existing portfolio of fintech companies and we heard, especially from financial institutions, one thing very clearly, crypto was a big priority,” says Adam Carson, the operating partner leading crypto efforts at Point72 Ventures. “Either their customers were demanding crypto products or they saw it as a new business opportunity.”

Other investments include New York-based Massive, which provides a new way for users to pay for digital apps and services; Bermuda-based 24 Exchange, a multi-asset class trading platform; and its latest investment, Skolem Technologies, a DeFi trade company that helps institutions get into the decentralized finance space without having to hire new employees.

“Talking to hedge funds was what led to Messari and Skolem. Talking to fintechs led to our investment in Zero Hash. Then talking to banks led directly to our investment in 24 Exchange,” says Carson.

Coming at a time when the total value locked in defi markets has plunged by 50% since March to $41 billion today, and when institutions are re-evaluating stablecoins, the investment is part of a larger trend that shows many investors in the space remain optimistic.

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