Tezos Foundation’s Portfolio Looks Healthy Thanks To New Strategy

Tezos Foundation’s portfolio is looking good these days after a number of restructuring strategies and efforts. The asset management strategies reduced the foundation’s exposure to crypto in a time when most of the cryptocurrencies crashed to new lows not seen in months. In our Tezos news today, we find out more about their strategy.

The researchers at the data analytics company Messari got into the second biannual update from the Tezos Foundation, and the report shows that Tezos Foundation’s portfolio had vast amounts of fiat capital and took an active approach to portfolio management. The researcher of Messari Wilson Withiam noted that the foundation dialed back to the exposure to crypto by liquidating about 7,500 Bitcoins and adding other conservative investments. Their website posted a snapshot of the 2017 token sale that shows 63% of the holdings were in BTC and the rest were in ETH. The update also indicates that almost all ETH holdings were liquidated, and the exposure to BTC was cut down to 61% while the value increased by 175%.

The latest updates show that the exposure to BTC was reduced to 47%, and the stability funds represent 24%, while the other 23% is in its XTZ tokens. ETH and other assets make up to 6% of the portfolio according to the report. Withiam added that it is possible to choose another strategy to offset the increased exposure to XTZ which got decreased by 55% in value, hitting an all-time high at the beginning of March. The foundation added 10.6 million tokens collected via the baking rewards. The change in portfolio management paid off over the past month when the traditional markets and crypto markets plummeted.

This type of restructuring could save other crypto projects in the future once a bear market batters most of the smaller projects. The Tezos Foundation played its cards well but this hasn’t provided a shield against significant losses for the coin. There were no survivors from the catastrophic COVID-19 economic crash. Tezos dumped about 68% below the $1.20 point before making a marginal recovery.  However, XTZ is one of the few assets that are still up since the start of the year and is trading 18 percent higher than the initial price at the beginning of the year of $1.35.