Reflexer Harshly Criticizes Paradigm, Terminates Cooperation Immediately
- Reflexer Finance criticized Paradigm, saying that Paradigm’s $270 million investment in FTX had brought heavy damage to the encryption industry.
- Reflexer no longer wants to work for Paradigm.
- Paradigm has surpassed the blockchain and will focus on a wider range of cutting-edge technologies, including artificial intelligence.
Reflexer Finance, an algorithmic stablecoin project, criticized Paradigm, saying that Paradigm’s $270 million investment in FTX had brought heavy damage to the crypto industry.
Paradigm said that it “wrote FLX to 0,” but Reflexer objected, calling it a deception and stating that they no longer wanted to work with Paradigm.
Previous reports said that the emphasis of encryption venture capital company Paradigm has shifted away from blockchain and toward a wider variety of cutting-edge technology such as artificial intelligence.
Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang co-founded Paradigm in 2018. The business will complete a $2.5 billion fundraising in November 2021. Well-known firms in its portfolio include Uniswap, OpenSea, and Fireblocks. Paradigm has currently invested in over 100 crypto companies.
Nevertheless, references to crypto and web3 have been deleted from the company’s main page, and it now refers to itself as a “research-driven technology investment firm” rather than investing expressly in “disruptive crypto/Web3 companies and protocols.”
Sam Bankman-Fried, the former owner of the now-defunct exchange FTX, participated in a Paradigm-managed fund in late 2021. According to bankruptcy court filings this week, the same $2.5 billion Paradigm One fund subsequently invested in his FTX and FTX US exchanges.
At the time, Paradigm One was the largest crypto-focused venture capital vehicle. Bankman-Fried invested in and received funding from that single pot of money as a consequence of the transactions.
Nevertheless, the FTX flash collapse had unforeseen repercussions, and Paradigm was one of the firms affected. Reflexer now requires Paradigm to destroy all remaining FLX tokens after the company “rebranded away from crypto.”
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