With the recovery of the cryptocurrency market, major venture capital institutions have also begun to accelerate their layout in the field of cryptocurrencies. Well-known cryptocurrency venture capital firm Paradigm is reportedly raising funds of $750 million to $850 million. If the fundraising is 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 of $750 million to $850 million. If the fundraising is completed, it will be the largest funding scale for a cryptocurrency industry fund since May 2022, when a16z launched a $4.5 billion cryptocurrency fund.
During the cryptocurrency bull market in 2021, Paradigm established a $2.5 billion fund, which was the largest cryptocurrency investment fund at the time.
Paradigm has recently faced challenges. Last summer, Paradigm faced widespread criticism from the cryptocurrency community for deleting descriptions about cryptocurrencies from its website and shifting focus to the future of artificial intelligence (AI). It later added back the descriptions about cryptocurrencies.
In October 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, while another co-founder, Matt Huang, testified in the trial of Sam Bankman-Fried (SBF), the founder of FTX. SBF was sentenced to 25 years in prison last week.
Paradigm had invested $278 million in FTX, and Matt Huang stated that Paradigm was unaware of any fraudulent behavior by FTX. Paradigm later reduced its FTX investment to zero.
Paradigm, Sequoia Capital, and other FTX investment institutions are collectively being sued by victims of FTX and are accused of providing legitimacy to FTX through their investments.
Despite setbacks, Paradigm has continued to fund cryptocurrency projects, including leading a recent funding round for Farcaster developer Merkle Manufactory, which valued Merkle Manufactory at approximately $1 billion.
Paradigm, along with other venture capital firms, is seeking to raise funds for launching cryptocurrency funds. This includes Hivemind Capital and Hack VC. Hivemind Capital is currently raising $50 million to launch an NFT investment fund, while Hack VC announced a $150 million fund in February and is currently seeking to raise at least $100 million for another investment.
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