Pantera Capital’s Portfolio Manager Highlights Key Investment Strategies

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Investing in crypto tokens is challenging. Typically, crypto experts believe tokens named after dogs, frogs, or cats perform better than legitimate project tokens. However, this strategy often results in losses of up to 99%.

Pantera’s Investment Strategy

Cosmo Jiang, a portfolio manager at Pantera Capital, emphasizes the importance of fundamental investment in the crypto industry. Jiang states that a lack of fundamental analysis can lead to failure in this environment.

“If investments in this industry are not supported by fundamental analysis, it only means we have failed.”

Jiang focuses on publicly traded tokens while managing nearly $5 billion in assets at Pantera Capital. When setting investment criteria, he evaluates product-market fit and the team’s ability to realize their vision.

Comparison of Solana and Ethereum

Jiang lists Solana (SOL) and Telegram’s TON token among his favorites, arguing that Ethereum (ETH) is less attractive than before. Solana has seen a greater increase in daily active addresses than Ethereum in the past six months.

“User growth determines the true value of a token.”

While Solana’s revenue surged by 180% in the last 30 days, Ethereum experienced a 37% increase. This scenario reduces the annual revenue gap, although Ethereum’s market value remains four times that of Solana.

Jiang also shows interest in DePIN projects, which focus on building physical infrastructure using blockchain technology. Projects like Render Network and Arweave are considered within this context, attracting investor interest.

“DePIN projects attract investors because they operate as real-world businesses.”

However, Jiang does not approach meme coins with enthusiasm. Instead, he prefers investing in projects that provide meme coin trading services.

He predicts that while his investment strategy may not yield a 132% return on Bitcoin in 2024, higher returns will arise as blockchain technology reaches billions of users in the long term.

Jiang believes that multi-year compounded crypto investments will succeed, and as companies providing blockchain technology infrastructure grow, they will surpass Bitcoin.

The future of blockchain technology may be shaped by investors making decisions based on fundamental analysis, which is crucial for sustainable growth.

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