Austin-based cryptocurrency hedge fund Multicoin Capital is long Ethereum as well as EOS while short both Litecoin and Ripple’s XRP.

Backed by Andreessen Horowitz’s Marc Andreessen and Union Square Venture’s Chris Dixon among others, the $75 million fund is defending its most significant position: EOS, a currency that raised $4 billion through an ICO last month but lost 40% of its value since then.

Multicoin Capital’s co-founder Kyle Samani revealed the fund’s attitudes towards different cryptos in “Balancing the Ledger” a weekly show on Fortune.

Samani said:

“For now we are holding our position, we haven’t sold any. The EOS launch did not go as smoothly as we were hoping it would. All things considered, actually it hasn’t gone as badly as I think people say.”

The EOS blockchain has been one of the most controversial blockchain projects to date. A few hitches delayed the project from going live, and several system bugs plagued the system; after which, the blockchain had to be shut down temporarily, sending panic waves among developers and investors.

Samani noted:

“I concur that it wasn’t as good as it should have been given the resources they had, so they made some mistakes, and slipped up. But on a long-term time horizon those are rounding errors, they don’t really matter.”

Multicoin’s largest holdings are in EOS, followed by Ethereum, which is a platform EOS is competing against.

He said:

“People seem to forget, but Ethereum in its early days back in 2015 when the blockchain launched, it launched with no tooling, no infrastructure at all. People were really trying to beat this thing into the ground, and the system was pretty just challenging to use for quite some time. EOS was better than that.”

He is extremely bullish on Ethereum and mentioned that, if he asked to pick a token today and come back in 10 years, it would be Ethereum.

The hedge fund shorted major cryptocurrencies in March this year. The decision proved fruitful as the value of coins fell by 35 percent in that month alone. They are, currently, shorting XRP and seem confident that it will be labeled a security.

Samani said:

“It’s quite clear to us that Ripple is a security. We don’t know when that news is going to drop, but the catalysts seem to have kind of gone away from Ripple.”

Ripple contends this notion, but Samani appears convinced that, as soon as it happens, XRP will stop trading on exchanges, making prices drop extensively.

For Litecoin, his views are less forgiving. He commented:

“Litecoin in my view has no reason to exist. It was a fork of Bitcoin. It’s just been sitting around. The only investment thesis I’ve ever heard for Litecoin is it’s a testnet for Bitcoin, but that’s not an investment thesis.”

Hedge Fund Bullish on EOS and Ethereum, Bearish on Ripple and Litecoin was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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