Berachain disputes ‘framing’ of a $25M refund deal to Brevan Howard
Analysis
Price Impact
MedThe initial report about a $25m refund right for brevan howard could have been perceived negatively, suggesting a lack of long-term commitment or a safety net due to investor doubt. however, berachain's founder disputing the 'framing' and clarifying it as a standard agreement for specific launch failure scenarios, combined with the fact that brevan howard has *increased* its bera exposure, mitigates the severity of the negative impact. the market will weigh the initial report against the founder's detailed rebuttal.
Trustworthiness
HighThe news is a direct report and counter-statement from berachain's founder, smokey the bera, addressing an article from unchained. the founder provides specific details and context, directly engaging with the reported claims and even confirming the existence of a 'side letter' but disputing its interpretation. this direct rebuttal from the project's leadership carries significant weight.
Price Direction
NeutralWhile the initial report might have caused some fud, the founder's robust explanation that the terms were standard, for a specific pre-launch scenario (failure to tge/list), and that the investor has actually increased their bera holdings, should largely neutralize the negative sentiment. the token is already down significantly from its peak, so further major downside directly from this specific news is less likely if the market accepts the clarification. it could lead to a minor rebound from fud being removed.
Time Effect
ShortThe immediate controversy and clarification will likely have a short-term effect as the market digests the information. once the explanation is processed, attention will likely shift back to broader market conditions and berachain's development milestones. fud and its resolution typically play out over days to a few weeks.
Original Article:
Article Content:
Jesse Coghlan 2 minutes ago Berachain disputes ‘framing’ of a $25M refund deal to Brevan Howard Berachain’s founder says a report that it gave one of its Series B investors a year-long refund right on its $25 million investment is both “inaccurate and incomplete.” Listen 0:00 24 News COINTELEGRAPH IN YOUR SOCIAL FEED The founder of Berachain has thrown cold water on a recent report suggesting that one of its lead Series B backers was granted the right to be refunded $25 million, calling its framing both “incomplete” and “inaccurate.” Unchained reported on Monday that Berachain gave Brevan Howard’s crypto-focused fund, Nova Digital, a one-year right to a refund on its $25 million investment in Berachain’s Series B round in April 2024. Unchained also provided a side letter signed by Berachain general counsel Jonathan Ip and Nova director Carol Reynolds that said Nova can recoup “some or all” of its investment for “twelve months following” Berachain’s token generation event (TGE). Berchain’s TGE, or token mint , took place on Feb. 6, meaning Nova could reportedly get a refund on its bet until Feb. 6, 2026. Berachain founder: Brevan given the same terms as others Smokey The Bera, Berachain’s anonymous founder, said on Monday that the report was “inaccurate and incomplete” and Brevan’s “investments involve several complex commercial agreements, but they participated in the Series B fundraise on the same paperwork as all investors.” “Brevan Howard co-led our Series B a year ago, out of their Abu Dhabi office, via Nova, a new liquid-only vehicle on the same terms as all other investors. Nova had approached Berachain to lead the round some months prior to this,” said Smokey. Source: Smokey The Bera Nova agreed to additional arrangements, says Smokey Smokey said that Nova asked for a provision “to guard for a scenario in which Berachain failed to TGE and get listed.” They said if that happened, the locked Berachain ( BERA ) tokens Nova purchased would “not be an eligible investment via Nova’s liquid strategy.” “Thus, we entered into the side letter posted in the article and committed Nova to additional commercial arrangements, including an agreement to provide liquidity on the network, which was only possible upon launch,” Smokey added. Related: SEC issues ‘rare’ no-action letter for Solana DePIN project token FUSE They said the letter wasn’t made “to close the deal with a party who otherwise would not have been interested, or to prevent against post-launch losses,” adding it also “generally has precedent.” Smokey also stressed that Nova is one of the largest tokenholders of Berachain and is a liquidity provider, holding both locked BERA acquired in the blockchain’s Series B and additional BERA it purchased on the open market. “They have increased their BERA exposure over time, despite running a liquid fund in a harsh alt environment,” they added. Smokey and the Berachain Foundation were contacted for comment via X. Brevan Howard did not respond to a request for comment outside of regular business hours. The BERA token is down 93% from its peak of $14.83, which it reached when it launched in February, and is currently trading at $1.05, up 3.2% on the day, according to CoinGecko. Trade Secrets: Bitcoin to see ‘one more big thrust’ to $150K, ETH pressure builds # Business # Venture Capital # DeFi Add reaction