Investment Firm Paradigm Still Optimistic About Crypto — Says ‘Issues at FTX Are Precisely Ones Defi Can Solve’

Investment steadfast Paradigm is inactive optimistic astir crypto’s imaginable pursuing the illness of FTX. “The blowup of FTX has caused immoderate to question crypto’s value. But the issues astatine FTX are precisely ones that decentralized concern [defi] tin lick done accrued transparency and security,” the firm’s co-founder emphasized.

Paradigm connected FTX Collapse, Defi

Paradigm co-founder Matt Huang took to Twitter to explicate the interaction cryptocurrency speech FTX’s illness has connected his company. Paradigm is simply a San Francisco-based concern steadfast focused connected supporting crypto and Web3 companies and protocols.

“We are shocked by the revelations astir FTX, Alameda, and SBF,” helium began. FTX and trading steadfast Alameda Research filed for Chapter 11 bankruptcy past week. Both companies were founded by Sam Bankman-Fried (SBF), who has stepped down arsenic the CEO of FTX.

“Facts are inactive coming to light, and determination volition beryllium galore lessons to learn,” Huang added, elaborating:

We consciousness heavy regret for having invested successful a laminitis and institution who yet did not align with crypto’s values and who person done tremendous harm to the ecosystem.

“Paradigm’s equity concern successful FTX constituted a tiny portion of our full assets and has present been written down to $0,” the co-founder detailed.

“We ne'er traded connected FTX and did not person immoderate assets connected the exchange. We person ne'er been investors successful related tokens specified arsenic FTT, SRM, MAPS, oregon OXY,” helium clarified.

Huang was antecedently a spouse astatine task superior steadfast Sequoia Capital, which besides precocious marked its FTX investments down to $0. The VC steadfast noted that “a liquidity crunch has created solvency hazard for FTX.”

The Paradigm enforcement emphasized:

The blowup of FTX has caused immoderate to question crypto’s value. But the issues astatine FTX are precisely ones that decentralized concern tin lick done accrued transparency and security. Crises specified arsenic this 1 assistance to clarify the existent merits of what we’re each gathering towards.

“The coming weeks and months volition beryllium a pugnacious clip for crypto, but we stay optimistic astir crypto’s imaginable and are committed to gathering towards the affirmative aboriginal we cognize it tin enable,” helium concluded.

Kraken CEO Jesse Powell said the harm to the crypto manufacture is huge and volition instrumentality years to undo. Binance CEO Changpeng Zhao has compared the FTX fiasco to the 2008 fiscal crisis. He warned of cascading effects from the rival exchange’s collapse. Former U.S. Treasury Secretary Larry Summers compared FTX to Enron.

What bash you deliberation astir the comments by the Paradigm co-founder? Let america cognize successful the comments conception below.

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