Digital asset manager Asymmetric Financial has pivoted from liquid trading strategies to focus on illiquid investments following significant losses in its crypto portfolio. The firm’s Liquid Alpha Fund faced a $10 million loss and inconsistent returns, prompting its strategic realignment toward long-term assets such as staking.
The underperformance triggered notable investor backlash, with public criticism led by prominent Solana supporter BigbrainSOL. The controversy highlights mounting pressure on crypto hedge funds to deliver stable yields during periods of heightened market volatility.
This transition occurs against a backdrop of broader cryptocurrency risks. A Hyperliquid token airdrop in 2024, which distributed 31% of its supply to 90,000 users at a $1.2 billion valuation, exemplified market opportunities but also exposed vulnerabilities to fraudulent distributions. Such incidents contributed to an annual global crypto scam loss exceeding $10 billion.
Industry-wide, hedge funds are increasingly balancing liquid positions with long-term holdings, prioritizing enhanced transparency and robust risk management frameworks. Asymmetric’s realignment signals this growing preference for diversified strategies to weather crypto market fluctuations.