Cut up Capital founder Zaheer Ebtikar stated he’s winding down the crypto hedge fund and becoming a member of stablecoin settlement chain Plasma as chief technique officer, citing a damaged enterprise mannequin for crypto-focused funds.
“I raised cash on the thesis that Crypto VC was overflowing with capital and the worth would inevitably discover its means all the way down to tokens that have been mispriced popping out of the bear market.” Ebtikar stated in an X submit on Tuesday, including that, “But after greater than $100 billion in enterprise funding and 6 years of euphoria, we’ve come again to a humbling baseline. Traders, operators, and merchants all ask the identical query ‘what does the longer term appear to be, and the place is the worth?”
Cut up Capital operated for practically two years, from its inception in 2024 to its closure in 2025. Ebtikar stated the fund was worthwhile in each years, with web returns effectively over 100% since its launch. He wrote that “nearly each investor made cash” and known as Cut up Capital a “high performing fund by each mark.”
Ebtikar started the wind-down course of within the fall of 2025 when the agency returned capital to exterior traders. Whereas he didn’t present a exact determine, he informed Fortune that the overall quantity returned was within the “eight-figure” vary.
New Period
Ebtikar views the stablecoin sector and Plasma as a “new period” able to scaling to fulfill “trillions of {dollars} in settlement” demand by integration with legacy monetary techniques.
In his new position as chief technique officer, he’ll handle senior partnerships, oversee investor relationships, and have a direct hand within the product growth cycle.
His remit consists of directing the go-to-market technique for the upcoming launch of “Plasma One,” a sequence designed for stablecoin distribution and settlement.
“That is the fruits of expertise I’ve gained working in crypto, and I now will actively apply it at Plasma going ahead as an early founding staff member,” Ebtikar stated.
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