Paradigm is a venture capital firm based in San Francisco. This crypto and Web3-focused company has multi-billion dollars in assets under management. Last year, in November, it presented a new venture capital fund of 2.5 billion dollars. But, one element could well tarnish the reputation of the venture capital firm. Indeed, Paradigm has invested in the FTX exchange, which is currently bankrupt.
Shoot “many lessons” of the bankruptcy of FTX
Matt Huang, managing partner and co-founder of Paradigm, expressed surprise after the revelations regarding FTX, Alameda and SBF. On November 15, he said on Twitter that the venture capital firm regrets investing in FTX. He asserted: “We deeply regret investing in a founder and company that ultimately did not align with crypto values, and caused enormous damage to the ecosystem.“.
According to him, “there will be many lessons to be learned“. It should be noted that, according to some reports, Paradigm reportedly invests $278 million in FTX exchange. Matt Huang explained, “Paradigm’s equity investment in FTX used to be a small portion of our total assets and has now been reduced to $0“.
The leader clarified that his company has never traded on FTX and had no assets on the exchange. He added that Paradigm has “never invested in related tokens such as FTT, SRM, MAPS or OXY“.
Matt Huang remains optimistic about the future of crypto
Like many others in the crypto industry, the Paradigm co-founder believes that “the coming weeks and months will be a tough time for crypto“. However, he remains optimistic, saying that the crypto sector has real potential. “We remain optimistic about the potential of crypto and are committed to building towards a positive future »he said.
On the other hand, Matt Huang thinks that people shouldn’t dispute the value of crypto because of FTX. According to him, the problems of the exchange can be solved by DeFi, “thanks to increased transparency and security“.
For Matt Huang, the potential of the crypto should not be questioned because FTX has collapsed. “Crises like this help clarify the true merits of what we are all building“, assured the co-founder of Paradigm.
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