Unveiling the Mystery of Arthur Hayes' Family Office Maelstrom: How Does It Differ from VC?

The founder of the cryptocurrency exchange BitMEX, Arthur Hayes, and former Head of Corporate Development, Akshat Vaidya, established Maelstrom Capital in 2023, focusing on investments in cryptocurrencies and digital assets, with Vaidya serving as the Chief Investment Officer. At the time, Hayes mentioned that they were targeting infrastructure trading, and Maelstrom's funds are entirely from the Hayes family, allowing them the flexibility to carefully select good investment projects without the pressure of capital injection. BlockBeats recently interviewed Akshat Vaidya, the Chief Investment Officer, providing a deeper insight into Maelstrom's investment model. Here is a summary of the report.

Arthur Hayes establishes the venture capital firm Maelstrom Capital, focusing on investing in crypto infrastructure.

Arthur Hayes' Role at Maelstrom

Vaidya described him leading a full-time team of six traders, investors, and researchers responsible for devising investment strategies, executing trades, and managing Maelstrom's venture capital portfolio. The investment team operates independently with Hayes as the ultimate decision-maker, requiring his approval or veto for each investment. His macro theories are a significant reference point for the team in formulating investment strategies. In terms of portfolio management, Hayes is more involved, and once an investment is made in a company, he becomes a supporter of that company, with his influence permeating throughout the entire investment portfolio.

How is Maelstrom Different from VC?

Maelstrom is able to provide operational support to the companies it invests in that other investors may find challenging. As a key opinion leader (KOL), Hayes often publicly introduces and promotes projects he invests in, such as Ethena.

On the other hand, venture capitalists (VCs) typically have a duty to deploy capital, which may lead them to lower investment standards to ensure funds are put into the market. Additionally, VC funds charge a 2% management fee and a 20% performance fee, incentivizing them to continuously raise more funds to maximize management fee income. Family offices, however, lack this incentive structure and can thus focus more on finding good investment opportunities, conducting thorough due diligence, negotiating better investment terms, and providing substantial assistance to the companies they invest in.

Is Maelstrom Investing in Meme Coins?

Due to Hayes frequently promoting meme coins, Vaidya emphasized that the company views meme coins as a cultural phenomenon and does not dismiss anything that can bring attention and resources to the crypto field. However, as a venture capital fund focused on building infrastructure for the permissionless future, Maelstrom does not directly engage in meme coin trading. Instead, it indirectly benefits from the value brought by the meme coin phenomenon through investments that support meme coin creation and dissemination infrastructure.

Is There Another Bull Market for Cryptocurrencies?

Akshat believes that the growth of the crypto industry resembles that of a child or a developing country, gradually maturing through rapid growth phases. Having entered the crypto industry in 2013, he has experienced multiple cycles. He believes the next cycle will be driven by several key factors:

• The integration of traditional finance (TradFi) with crypto technology
• Governments worldwide beginning to view crypto as a strategic focus
• The development of the decentralized physical infrastructure network, DePIN

Currently, there are numerous early experiments in the DePIN space, success is only a matter of time, attracting more users, investors, engineers, and new application scenarios into the crypto field. As DePIN matures, crypto technology will integrate into people's lives in ways beyond our imagination on a broader scale.