Paradigm regretted investment in FTX
Paradigm “deeply regrets” about investments in the FTX cryptocurrency exchange, said co -founder and managing partner of the investment company Matt Juan.
FACTS ARE STILL COMING To LIGHT, and There Will Be Many Lessons to Learn. We Feel Deep Regret for Having Invested in A Founder and Company Whitamately Did Not Align with Crypto’s Values and Who Have Done Enormage to the EcosyStem.
– MATT HUANG (@MATTHUANG) NOVEMBER 15, 2022
“We are shocked by revelations about FTX, ALAMEDA and SBF [Sam Bankman-Frida]. The facts are still popping up, and there are many lessons to learn. We are deeply regretted that we invested in the founder and company, which ultimately did not correspond to cryptocurrency values and caused enormous damage to the ecosystem, ”wrote the co -founder of Paradigm.
According to him, investments in the platform were “a small part of the total assets” of Paradigm and are now “written off to zero”.
“We never traded FTX and had no assets on the exchange. We have never invested in related tokens such as FTT, SRM, Maps or Oxy, ”Juan emphasized.
He added that the collapse of the company made some doubt the value of cryptocurrencies. However, the co-founder of Paradigm sees the problem https://gagarin.news/news/nft-is-not-a-jpeg-bayc-proved-it/ in the Bankman-Frida exchange itself. In his opinion, this is exactly the fact that decentralized finances “can decide by increasing transparency and security”.
The Blow-up of FTX HAS CASUSED to Question Crypto’s Value. But The Issues At FTX ARE PRECISELY ONES that Decentralized Finance Can Solve Increased Transparency and Security. CRISES SUCH AS ONE HELP To Clarify The True Merits of What We’re All Building Towards.
– MATT HUANG (@MATTHUANG) NOVEMBER 15, 2022
“Such crises help to clarify the true virtues of what we all strive for,” Juan explained.
In 2021, ParadigM invested in FTX as part of the record for the Round for the Round of the Strip for $ 900 million series.
In January 2022, the company supported the American exchange of the exchange – the structure attracted $ 400 million when estimated at $ 8 billion. At the same time, on the receipt of a similar amount from investors, which included ParadigM, FTX said FTX. Its assessment increased to $ 32 billion.
Previously, Sequoia Capital also recognized the loss on investments in FTX. According to the calculations of the venture company, they exceeded $ 213 million.
According to Crypto Fund Research, the losses of cryptocurrency funds due to bankruptcy of the exchange can be up to $ 5 billion. The crisis touched on 25-40% of industry investment structures that invested in the platform or its Utility Token FTT, experts noted.
Recall, on November 11, FTX Group submitted an insolvency application in accordance with Chapter 11 of the US Code of Bankruptcy. Bankman-Frida left the post of CEO.
According to the documents for the court, the operator of the bitcoin tenge has more than a million creditors. Bloomberg considered unlikely the return of funds by customers.
CEO Binance Chanpen Zhao compared the current situation in the industry with the financial crisis of 2008. In his opinion, in the near future, even more companies may collapse.
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