According to Blockworks, cryptocurrency-focused asset manager Multicoin Capital lost more than half of its flagship fund’s capital in about two weeks. The drop of about 55% — one of the worst in Multicoin’s history — was triggered by FTX’s rapid descent into insolvency, according to three sources familiar with the matter. The figure excludes illiquid, side-pocketed, investments. The staggering downturn reflects the 9.7% of fund assets, including derivatives, that were custodied by FTX. Other factors behind the losses, sources said: a longstanding bullish thesis on $SOL, Solana’s native token; Solana-based assets, including Mango, wherein FTX was the only available US counterparty; FTX.US equity stakes; and outstanding derivative contracts. Multicoin has no plans to close up shop, shutter its flagship vehicle or convert to a proprietary trading operation, sources said. It is also in the process of introducing a number of operational and infrastructure improvements, including endeavors to mitigate counterparty risk.