Bear-ly Holding On? 🐻

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Okay, so a crypto project… a blockchain, if you must… called Berachain (yes, bear-themed, very sophisticated) is having a bit of a moment. Reports surfaced that one of their big investors, Brevan Howard, had a “refund right” on their $25 million investment. Like, “Hey, if this doesn’t work out, can we get our money back?” which, in the grand scheme of risky investments, is… understandable? But also, not great for optics. The Berachain co-founder, who goes by “Smokey the Bera” – seriously – is saying it’s all a big misunderstanding. A compliance thing.

Refund Right Explained

Berachain, which apparently raised a staggering $142 million with a valuation based on… hopes and dreams, is facing questions after it came to light that Brevan Howard’s Nova fund had a handy little escape hatch on its investment. Smokey the Bera – are we sure this isn’t a children’s show? 🤷‍♀️ – fired off a long tweetstorm insisting everything is fine, and the refund clause was purely for, like, boring regulatory reasons. Not because they secretly think the whole thing might collapse.

According to a report, this refund right would have allowed the Nova fund to get its money back up to a year after their token launch. Smokey then blamed “disgruntled ex-team members” – because that’s always the explanation, isn’t it? – for the whole mess. 🙄

Apparently, the refund right was there to protect against the horrifying scenario of, wait for it… not launching. Yes, Smokey says it was tied to a promise of liquidity, which only happens if they actually get off the ground. Very clever.

Smokey insisted Nova is still a believer (and a big BERA holder), despite the token price being… less-than-ideal. And he denied anyone got special treatment. Because, you know, transparency is key. 😉

Operational Challenges and ‘Revenge Arc’

The refund clause is causing some raised eyebrows, with lawyers calling it “highly unusual.” Which, let’s be honest, is lawyer-speak for “that’s kinda sketchy.” The BERA token is currently trading at about a third of what Nova paid for it. So, yeah, there’s a financial incentive to maybe exercise that refund right. Just sayin’.

Smokey acknowledged the bad press but bravely declared that the “revenge arc” is still on, even if they’re getting “sucker punches.” It’s nice to see a project with ambition. And by “revenge,” I assume he means proving all the haters wrong. 🤞

And to show they’re totally not worried, they announced a new funding round of $110 million! From Polychain and Kraken, no less. Because throwing more money at a problem always solves it, right? 💸

FAQ ❓

  • What’s the drama with Berachain? Someone found out a big investor had a ‘get out of jail free’ card.
  • What did Berachain say? It’s a compliance thing! Nothing to see here! (allegedly)
  • Why are people mad? Because a refund right is weird, especially when the price is down.
  • What’s next? More money, more drama, and a “revenge arc.” Stay tuned! 🍿

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2025-11-26 09:58