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Polychain Capital, the world’s first billion dollar crypto fund, is increasing its investments in agricultural yield based on Ethereum token yearn.finance (YFI) by $ 8.2 million.
Led by former Coinbase head of risk management Olaf Carlson-Wee, Polychain Capital bought an additional 141 YFIs this week, following the $ 4.7 million investment in the ERC20 token in October.
Polychain’s recent $ 8.2 million investment makes the San Francisco-based mutual fund the 10th-largest YFI holder, second to Messari’s market analyst Mason Nystrom.
“Polychain Capital doubled and bought another 141 YFIs this week. Polychain is now the 10th largest holder with 470 YFI (~ 8.5 million) or 1.6% of the total supply. “
Yearn.finance saw a strong rebound in prices this month. After facing an inexorable sell-off that brought its price to under $ 9,000 on November 5th, YFI is back up to $ 16,782 at the time of writing. The asset ranks among the best-performing decentralized finance (DeFi) games last week, with over $ 509 million in market value and $ 555 million in daily transactions, for CoinMarketCap.
Developed by Andre Cronje, the YFI token has a maximum supply of 30,000 tokens. With a higher offering than Bitcoin (BTC) and a wide range of use cases including automated investment management and credit lending, YFI has become one of the fastest growing cryptocurrencies in history.
However, crypto analyst Jason Choi warns against blindly following Polychain investments.
“Polychain allegedly just took a $ 5M position in YFI. Even though I’m long-term optimistic and see it as validation, blindly copying trading funds is a bad idea. Investment alone does not indicate conviction; the size relative to the AUM does. 0.05% versus 5% tell very different stories “.
Disclaimer: Opinions expressed in The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that transfers and trading are at your own risk and any losses you may incur are your own responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock / Vink Fan
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