Finance

This Web3 Firm Reduced its Investment in FTX to Zero

11/13/2022
Bitcoin Ethereum News
  • Web3 Venture Capital firm Paradigm reportedly stated that it has reduced its investment in FTX to zero.
  • It must be noted that it has raised around $2.5 Billion in November 2022 to start investing in the crypto firms.

Matt Huang is the Co-founder and Managing Partner at Paradigm. While the firm added that its limited partners marked down its investment in the FTX to almost null. This information was collected from two persons who are familiar with the current happenings.

On the other hand, on November 08, 2022, Paradigm’s Head of Policy, Justin Slaughter, announced that it has launched a Crypto Policy Council that will tackle crypto policy challenges.

Paradigm said to its investors that it almost nullified its investment in the FTX. As it has invested $290 Million in the group of firms tied to the CEO of FTX, Sam Bankman-Fried. In spite of its investment, the crypto investment firm mentioned that they are no longer a client of FTX and also did not own any crypto asset exposure to the firm.

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Moreover, Tracy, a Hightowers Capital Advisor, mentioned in her recent tweet that BlackRock, Ontario Pension Fund, Sequoia, Paradigm, Tiger, Global, SoftBank, Alan Howard, Multicoin, VanEck and Temasek had FTX exposure. She also raised some questions as to how much exposure did it have and how much is left? Did they deleverage on Wednesday’s bloodbath?

On the other hand, FTX’s native token FTT, continuously noted the drop in its price and is currently down by 12.74% in the last 24 hours with a 24-hour trading volume of $334.45 Million.

Paradigm’s Newsletter

Paradigm announced a $2.5 billion fund launch in the previous year. And it has the investors like Jump Capital, Alameda Ventures, Dragonfly Capital, Digital Currency Group, Genesis Trading, QCP Capital, Nexo, Optiver US, IMC, GSR Markets, Akuna Capital, Babel Finance, MGNR, Avon Ventures, CMT Digital, Pattern Research, Vectr Fintech, Amber Group  and some of the most influential private investors in the OTC markets.

Additionally, according to its newsletter published on November 05, 2022, Paradigm recorded a high volume in October 2022 and in that newsletter the firm clearly noted that the FTX integration is driving a parabolic climb in its futures volumes as it gains market share.

Paradigm shared that $10.7 Billion notional was transacted in October 2022; Transacted 32% of Deribit’s total BTC volume and 28% of ETH; $2.3 Billion total volume on FTX; and Average daily 7-day volume in October was $590.5 Million/day.

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Source: https://www.thecoinrepublic.com/2022/11/13/this-web3-firm-reduced-its-investment-in-ftx-to-zero/