Selling Bitcoin Doesn't Mean You're Not Bullish: Cypherpunk CEO

Despite a massive wave of liquidations in the cryptocurrency market, some companies that have been selling off their crypto in recent mon...



Despite a massive wave of liquidations in the cryptocurrency market, some companies that have been selling off their crypto in recent months are not bearish on Bitcoin (BTC) at all.

Canadian investment firm Cypherpunk Holdings was one of the firms that opted to sell off crypto in the middle of the crypto winter of 2022, liquidating 100% of its Bitcoin and Ether (ETH) by June. One of the world’s first public companies to invest in Bitcoin, Cypherpunk said at the time that it maintained its long-term “bullish outlook on crypto” despite selling off all of its digital coins.

One may find Cypherpunk’s crypto liquidation somewhat odd, as the company’s shares publicly trade under the symbol HODL on the Toronto 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 Bitcoin regardless of market circumstances.

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

“We are in this business because we are net bullish on long-term crypto,” Gao said in an interview with Cointelegraph. Cypherpunk can jump back into Bitcoin or “any crypto or any crypto basket” tomorrow if it chooses, and those are “definitely opportunities” the company is actively pursuing, the CEO noted.

Gao said the industry has seen forced liquidations as even “supposedly the most sophisticated” institutions like Voyager, Three Arrows Capital and Celsius got involved in deals that were “completely devoid of risk management.” According to the CEO, the absence or near absence of risk management is what really separates the crypto industry from something more mature. Gao added:

“Looking forward, this mentality towards managing risk while remaining optimistic in the long term is very important. […] You can be bullish on crypto, but you can always sell out of the market.

According to Gao, Cypherpunk began the liquidation process in early May, just before the collapse of the Terra (LUNA) network – now renamed Terra Classic (LUC) -, along with the algorithmic stablecoin TerraUSD (formerly UST) lose its peg to the US dollar May 10. “By the time this happened, we probably offloaded about 30% or 40% of the risk,” Gao said, adding that Cypherpunk then sold another portion when BTC briefly traded above 30,000. $ end of May. “The last third we probably got rid of was in June,” Gao noted.

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“We made almost no progress, but we also avoided a lot of capital destruction,” Gao said. He went on to say that he was very optimistic about altcoins like Ether and Solana (FLOOR), despite some issues with Solana’s ecosystem issues in early August.

“Longer term, at least at this point, I would be more conservatively bullish on Bitcoin than these other tokens. But in the next two or three months, I will probably be more biased towards Ethereum and Solana,” the CEO noted.