Dragonfly launched its inaugural liquid crypto fund in June 2021, which is managed by Kevin Hu, Ashwin Ramachandran, and Lawrence Diao. According to Dragonfly, as of April 2022, the liquid investment platform raised more than $450 million including internal capital and SPVs.
Kevin Hu, Partner and Head of the Liquid Platform, said “We believe that the current market environment is especially attractive for liquid crypto assets as the market is not distinguishing between quality assets and vaporware. Tokens with cash flow and governance rights to products with significant traction are down just as much as many zombie assets with no future. Furthermore, we believe most of the capital in crypto is allocated to privates/venture, so there is a lack of dedicated capital and ability to underwrite altcoins once they become liquid. We believe this is creating massive dislocation and long-term opportunities as many liquid assets are trading well below their previous private rounds.”
Lawrence Diao added, “During the 2018-2020 bear market, there were doubts whether crypto was here to stay. This time around we see a much stronger belief in the future. While it is still early, protocols are getting organic traction and impacting real world behavior, top tier tech and finance talent are entering this space at a blistering pace and institutional capital is trickling into the industry.”
“Dragonfly has always differentiated itself by its global approach to investing. We aim to capture venture-like returns in a liquid vehicle by building a highly concentrated portfolio and then actively partnering with founders, engaging the community, participating in governance, and providing utility onchain,” added Ashwin Ramachandran. “We will continue investing in crypto infrastructure, decentralized protocols, and breakthrough consumer applications, as well as the proliferation of NFTs, gaming, and DAOs.”