CoinFund announces the spin-off of its liquidity business, steering the crypto VC ecosystem toward specialization and division of labor

As a well-known multi-strategy investment firm in the crypto space, CoinFund is undergoing a significant strategic adjustment. According to the latest news, CoinFund has spun off its liquidity strategy business into an independent company, marking the company’s transition from a comprehensive investment platform to a specialized venture capital firm. This reflects an important trend of increasing maturity in the crypto VC ecosystem.

Specific Arrangements of the Spin-off

The spin-off involves personnel and business reorganization. The liquidity strategy business will be independently operated by Seth Ginns and Chris Perkins, who will step down from operational roles at CoinFund after the transition. Meanwhile, the core CoinFund team will continue to be led by Jake Brukhman, Alex Felix, and David Pakman.

The Differentiation Between the Two Independent Entities

Strategic Considerations Behind the Spin-off

CoinFund officially stated that this move helps each investment strategy focus on its development, better serving LPs and Web3 entrepreneurs. This highlights several key points:

• Liquidity investments and early-stage project investments require completely different investment logic, staffing, and risk management systems
• Independent operation allows each team to deepen and specialize in their respective areas
• The two entities post-spin-off can optimize LP structures and investment cycles targetedly
• This separation is conducive to improving overall investment returns and service quality

New Signals in the Crypto VC Ecosystem

CoinFund’s spin-off is not an isolated event but reflects a deeper change in the crypto venture capital ecosystem. As the market matures, large multi-strategy funds are increasingly differentiating into specialized entities. This trend implies:

• Investors are increasingly seeking managers who are truly specialized in specific fields
• The return cycles and risk characteristics of early-stage and liquidity investments differ greatly, making it difficult to manage with a single system
• Professional specialization can better match the needs of different LPs

Summary

CoinFund’s spin-off demonstrates the trend of maturity and specialization in the crypto VC ecosystem. By spinning off its liquidity strategy business, CoinFund can focus on investing in seed and growth-stage Web3 projects. This specialized division is expected to provide higher quality services to LPs and entrepreneurs. It also indicates a phenomenon: as the crypto market develops to its current stage, the advantages of comprehensive funds are gradually diminishing, while the value of deeply specialized institutions is rising.