Despite the massive wave of liquidations in the cryptocurrency market, some of the companies that have sold their cryptocurrencies over the past few months are not trending lower on Bitcoin (BTC) at all.

One of the companies opting to sell cryptocurrency amid the winter of 2022 was Canada-based investment firm Cypherpunk Holdings, liquidating 100% of bitcoin and ether (ETH) by June. Cypherpunk was one of the first public companies in the world to ever invest in Bitcoin, and at the time said it had maintained its “long-term bullish outlook for cryptocurrencies” despite selling all of its cryptocurrency.

One might find Cypherpunk’s crypto filtering somewhat strange as the company’s shares are publicly traded under the ticker symbol HODL on the Canadian Stock Exchange. The acronym is widely used in the crypto community to refer to “Hold On for Dear Life,” or the bullish strategy of holding onto bitcoin regardless of market conditions.

According to Jeffrey Gao, CEO of Cypherpunk, crypto investors can still remain bullish despite cashing in their cryptocurrency from time to time.

“We are working in this space because we are outperforming crypto in the long run,” Zhao said in an interview with Cointelegraph. The CEO noted that Cypherpunk can return to Bitcoin or “any cryptocurrency or any basket of cryptocurrencies” tomorrow if they want, and these are “definitely opportunities” the company is actively pursuing.

Zhao said the industry had seen forced liquidations so that “supposedly the most sophisticated” institutions such as Voyager, Three Arrows Capital and Silesius were involved in operations that were “completely devoid of risk management.” According to the CEO, the absence or near-absence of risk management is what really separates the cryptocurrency industry from something more mature. Gao added:

“Going forward, this mindset towards risk management while still being optimistic about the long-term is very important. […] You can be bullish on cryptocurrencies, but you can still sell outside the market.”
According to Gao, Cypherpunk began the liquidation process in early May, right before the collapse of the Terra Network (LUNA) – now renamed Terra Classic (LUNC), with the loss of algorithmic stablecoin TerraUSD (formerly UST) pegging it to the US dollar on May 10. “By the time that happened, we might have offloaded about 30% or 40% of the risk,” Gao said, adding that Cypherpunk then sold another chunk when BTC briefly traded above $30,000 in late May. “The last third we probably got rid of was sometime in June,” Zhao noted.

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“We basically didn’t make any progress, but we also avoided a lot of destruction in the capital,” Gao said. He went on to say that he is very optimistic about altcoins like Ether and Solana (SOL), despite some issues with Solana ecosystem issues in early August.

“In the long run, at least at this point in time, I will be conservatively more optimistic about Bitcoin than those other tokens. But over the next two or three months, I will probably be more biased towards Ethereum and Solana,” the CEO noted.

Source: CoinTelegraph