• The extended crypto winter has prompted Braintrust to dump the tokens escrowed for investments.
• Tiger World has bought tons of of hundreds of BTRST tokens issued by Braintrust amid the bear market.
• The crypto winter underscored the problems surrounding enterprise capital corporations within the crypto business.

The continuing crypto winter has prompted funding large Tiger World to rethink its involvement with the crypto house. For the reason that starting of 2023, Tiger has dumped tons of of hundreds of crypto tokens in a bid to recoup its funding and preserve money. One in every of its most high-profile investments, Braintrust, has costed the enterprise capital agency tens of millions of {dollars}.

In response to a report by Fortune, Braintrust, a blockchain-powered recruitment platform, was one amongst Tiger World’s investments into personal tech corporations, in 2021. In return for the funding, the enterprise capital agency obtained tens of millions of Braintrust tokens (BTRST) as a substitute of getting a stake within the crypto startup.

The BTRST token served as Brainstrust’s forex and facilitated rewards to the platform’s customers. Aside from issuing the tokens to Tiger, Braintrust additionally bought a major sum to the VC large. The sale included a multiyear lock-up settlement as a way to stop Tiger from dumping the tokens and tanking its worth.

The wager on Braintrust initially paid off as Tiger World made a good-looking return throughout 2021’s bull run. Nonetheless, the collapse of crypto giants like Terraform Labs and FTX in 2022 triggered a market-wide sell-off resulting in tanking costs and the continuing crypto winter. The crypto market capitalization went down by a whopping 70%.

This prompted Tiger World to rent institutional funding agency FalconX to promote tons of of hundreds of BTRST tokens. As per on-chain information reviewed by Fortune, wallets related to Tiger World have been dumping tokens since January 2023 in an try to calm their restricted companions.

The sell-off damage BTRST’s worth, which has misplaced greater than 20% of its worth this 12 months. Braintrust co-founder Adam Jackson said that he was assured in his agency’s crypto-based technique. Jackson argued that the decline in BTRST’s worth had no impression on his platform’s utility.