With the recovery of the cryptocurrency market, major venture capital institutions have also begun to accelerate their layout in the cryptocurrency field. It is reported that the well-known cryptocurrency venture capital firm, Paradigm, is raising funds for 7.5 to 8.5 billion US dollars. If successful, it will become the largest cryptocurrency industry venture capital fund since May 2022.
According to Bloomberg, cryptocurrency venture capital firm Paradigm is in negotiations with investors and plans to raise funds for a scale of 7.5 to 8.5 billion US dollars. If the fundraising is completed, it will be the largest cryptocurrency industry fund raised since May 2022. In May of that year, a16z launched a cryptocurrency fund with a scale of 4.5 billion US dollars.
During the cryptocurrency bull market in 2021, Paradigm established a fund with a scale of 2.5 billion US dollars, which was the largest cryptocurrency investment fund in history at that time.
Paradigm has recently experienced a series of events. Last summer, Paradigm received widespread criticism from the cryptocurrency community for deleting descriptions about cryptocurrencies from its website, which was seen as a betrayal of the Web3.0 revolution and a shift towards focusing on the future of artificial intelligence (AI). It later reinstated the descriptions about cryptocurrencies.
In October of last year, one of the co-founders of Paradigm stepped down from the position of managing partner and remained with the company as a general partner. Another co-founder, Matt Huang, testified in the trial of Sam Bankman-Fried (SBF), the founder of FTX, and SBF was sentenced to 25 years in prison last week.
Paradigm had previously invested 278 million US dollars in FTX. Matt Huang stated that Paradigm was unaware of any fraudulent activities by FTX, and Paradigm later wrote off its investment in FTX as zero.
Paradigm, Sequoia Capital, and other FTX investment institutions are collectively being sued by victims of FTX and are accused of legitimizing FTX through their investments. Despite setbacks, Paradigm has continued to fund cryptocurrency projects, including leading a recent round of financing for Farcaster developer Merkle Manufactory, which valued Merkle Manufactory at approximately 1 billion US dollars.
Paradigm, along with other venture capital firms, is seeking to raise funds to launch cryptocurrency funds. This includes Hivemind Capital and Hack VC. Hivemind Capital is raising 50 million US dollars to launch an NFT investment fund, while Hack VC announced a 150 million US dollar fund in February of this year and is currently seeking to raise at least 100 million US dollars for another investment.
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