Crypto venture firm Multicoin Capital told investors in a letter on Thursday that FTX’s collapse and the price declines across the industry has pushed the fund down by 55% this month, and added that the market is poised to get worse before it rebounds.

Multicoin said there’s a chance the firm will recover some of its funds from FTX, but because those assets are now wrapped up in bankruptcy proceedings, it anticipates marking them down to zero. It’s a stark reversal for five-year-old Multicoin, which announced a $430 million fund in July, its third and largest to date.

“We expect to see contagion fallout from FTX/Alameda over the next few weeks,” the letter said. “Many trading firms will be wiped out and shut down, which will put pressure on liquidity and volume throughout the crypto ecosystem. We have seen several announcements already on this front, but expect to see more.”

CNBC Crypto firm Multicoin says contagion fallout from FTX will continue