A Bitcoin investor lost almost 250 thousand dollars in a short period of 5 days due to the fall in March.
An investor named Vlad Matveev entered the cryptocurrency market last year with a large amount of capital. As a result of his research, Matveev decided to give his money to a hedge fund called Cryptolab Capital.
Matveev, who invested in this hedge fund in June 2019, has been unable to earn money even though it has been several months. Realizing that his investment remained largely constant, Matveev stated that he wanted to meet the managers of this fund in February 2020 and leave the fund.
The events started to develop after saying that he wanted to leave Matveev Cryptolab Capital. According to information shared by Matveev on Medium, he received a response from the Cryptolab Capital management shortly after he submitted this request. Meanwhile, Matveev understood that his investment was completely melted and he lost all his money.
According to Matveev’s share, Cryptolab Capital; he claims that events are developing as follows:
“An algorithm called Stakannik, used by Cryptolab Capital, started taking long positions from XBTUSD on 7 March. Fund managers decided to close some of the positions taken by the algorithm the next morning. But there was no liquidity. Fund managers were able to close only a third of these positions until the evening of March 10. Managers tried to place a limited sales order on March 11 to cover the rest. On March 12, the market collapsed (the day when Bitcoin fell to $ 3,700), executives tried to sell at the market price, but this time BitMEX stopped processing orders in the market. The stock market then liquidated all positions automatically. ”
Fund managers were unable to sell due to lack of liquidity, and after the Bitcoin price fell to $ 3,700, the job was laid off. Matveev describes the process after receiving this news as follows:
“Managers approved the information that there was no withdrawal in the stock market. So my money really melted….
… Before I gave my money to this hedge fund, of course, I filled out a form that I understood the risks and that I was aware that I could lose all my money. But I did not pay to go to this hedge fund and make leveraged Bitcoin transactions. I gave them to implement investment strategies that I wouldn’t apply on my own. But instead of trading with different algorithms, they used all of my money to take long positions from a product that was extremely volatile. Inexperienced investors make this mistake very often. But experienced, institutional investors don’t. There seemed to be something odd about this. ”
Matveev, who thinks “there is something strange” in this business, as he says; He started to investigate investors in the Cryptolab Capital team. Matveev, who especially emphasized an asset manager named Alex Butmanov; he realized that other investors complained about Butmanov. Matveev is now trying to communicate with investors who have lost their money, just like him, Butmanov ‘because of’.