DIKSIA.COM - SINGAPORE, Temasek Holdings has officially ended its support for the crypto and digital asset industries after suffering a $275 valuation loss due to the FTX exchange bankruptcy.
In his official statement, Temasek's Chief Investment Officer (CIO) Rohit Sipahimalani stated that Temasek's withdrawal from investment financing for crypto companies was to prevent a spike in losses.
Given that the Singapore-based company's funds have continued to dwindle in recent months due to the bankruptcy of crypto exchange FTX, which has been accused of running a large-scale bogus investment Ponzi scheme.
Prior to bankruptcy, Temasek had a 0.09 percent investment in FTX as of March 31, 2022. However, Temasek was not directly involved in cryptocurrencies.
However, due to the FTX case, the Singapore investment manager had to write off a $275 million investment from the company's portfolio.
In fact, the failure of FTX forced Temasek to cut salaries across the entire investment team to stem mounting losses.
Concerned that this threat would trigger another decline in the company's valuation, FTX eventually officially withdrew from its crypto asset funding plan.
“There is a lot of regulatory uncertainty in this environment. I think it's very difficult for us to reinvest and trade given this regulatory uncertainty,” said Rohit Sipahimalani, Temasek's chief investment officer, as quoted by CNBC International.
“To prevent similar losses, we declare that Temasek will no longer intend to invest in cryptocurrencies,” he added.
Temasek himself has always been actively involved in funding the Metaverse and Web3 industries.
In August last year, Temasek reportedly participated in a $100 million funding round for Animoca Brands, a company that supports the development of Metaverse and Web3.
In February of last year, Temasek also paid out $200 million for Amber Group, a crypto lending platform.
However, due to the uncertainty of crypto regulation, Temasek decided to stop investing in Metaverse and Web3 companies.
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