Pantera Capital published an article on X platform stating that on the one-year anniversary of FTX's collapse, we want to take some time to reflect on how to deal with this crisis, the impact on investment portfolios, and the lessons learned for the future.

After news of FTX and Alameda's poor financial condition came out, we formed a war room to assess the impact on our investment portfolio. Our goals were to: 1) identify all potential risks; 2) provide assistance to high-risk teams. It is worth noting that we have been working in this industry for ten years, and this work is not new to us. We have already launched a war room to deal with similar pressure environments, such as the 2018 crypto winter, the collapse of Three Arrows, LUNA, and the recent banking crisis. After identifying all potential risks (custody, counterparty, investment, etc.), we worked with the affected teams to mitigate further risks and develop a forward plan. Fortunately, less than 5% of our investment portfolio team was significantly affected, in part because of the active risk management practices we regularly emphasize to founders.

Here are some ideas for building teams in this field: 1. Establish a process within the organization to minimize the amount of time any asset stays on any exchange or third party.

2. Implement a multi-signature process for all asset transfers to avoid single-point control of any asset transfer. Diversify your on-chain and off-chain counterparty risk by ensuring that you deal with as many custodians, exchanges, and banks as possible.

3. Avoid any unnecessary principal risk to the company's financial assets by maintaining liquidity and cash flow as much as possible. Take steps to ensure that bank accounts comply with FDIC insurance limits.

4. Transfer assets from mixed comprehensive wallets (such as exchanges or any medium where your funds are mixed with other funds) to on-chain isolated wallets (such as custody, self-custody, or anywhere funds are isolated from other third-party funds).