Paradigm targets $850m crypto fundraiser

Paradigm aims to secure fresh financing for cryptocurrency investments, with an increasing number of venture capitalists showing interest in this rapidly growing sector in the digital asset market.

According to a report by Bloomberg on April 2, investing firm Paradigm is intending to gather up to $850 million for a new fund. This announcement comes after Bitcoin surpassed its previous record price and cryptocurrencies approached their highest point in 2021.

Based on RootData’s report, there was a more than 50% increase in investments towards crypto protocols and innovative concepts last month, with approximately $1.1 billion being poured into the digital asset industry. Decentralized finance solutions, specifically those operating on Ethereum, Polygon, and other relevant blockchains, received the largest share of these investments.

Paradigm is working to gather at least $750 million, which could be the company’s largest fundraising since 2021. In that year, Paradigm successfully raised $2.5 billion for a cryptocurrency fund, surpassing previous records until Andreessen Horowitz (a16z) announced a $4.5 billion crypto investment fund in May 2022.

Several venture capital firms such as a16z, Hack VC, and Hivemind are participating in fundraising efforts totalling between $50 million and $150 million, fueled by renewed interest in cryptocurrencies.

Paradigm’s sour FTX bet

Led by Coinbase co-founder Fred Ehrsam and ex-Sequoia Capital executive Matt Huang, Paradigm played a significant role in investing $278 million in Sam Bankman-Fried’s venture. Huang was part of a group that put money into FTX, the now-bankrupt crypto exchange.

In November last year, the former Sequoia associate testified to the jury that Sam Bankman-Fried had misled Paradigm about the workings of FTX. Huang’s evidence at the three-week trial played a role in securing a guilty verdict against FTX’s founder.

After Huang’s company declared its investment in FTX as worthless due to bankruptcy, Bankman-Fried was given a 25-year prison sentence for swindling investors and customers out of more than $8 billion.

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2024-04-02 23:18