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Investment firm Paradigm, created to invest in cryptocurrencies and blockchain, has shifted its focus to artificial intelligence, media noticed.
The investment firm Paradigm, founded by Coinbase cryptocurrency exchange co-founder Fred Ehrsam, has removed references to cryptocurrencies, blockchain, and Web3 from its home page.
According to an archived page on the Wayback Machine, the venture firm’s website previously claimed that Paradigm “believes in the defining potential of cryptocurrencies in the next few decades.” However, the updated version does not mention cryptocurrencies at all. According to the Wayback Machine, the changes to the site took place in early May.
Now, the venture firm’s website claims that it helps startups develop their potential, from technical to operational support. Paradigm also clarified that the initial investment fee is $1 million.
In a media commentary, sources close to the firm said that Paradigm wants to expand its startup reach beyond the cryptocurrency and blockchain industries. It is alleged that the firm is not giving up on crypto investments, but wants to focus more on artificial intelligence (AI). Paradigm has already invested in AI startup AI Arena, but details on other investments were not disclosed.
Recall that earlier Paradigm had to write off one of its large investments in the amount of $250 million in the collapsed FTX crypto exchange. Moreover, the matter was not only financial losses. In February, venture capital firms Sequoia Capital, Thoma Bravo and Paradigm faced a class-action lawsuit from their clients over FTX ads.
The plaintiffs allege that the defendants advertised FTX in 2021 to secure hundreds of millions of dollars of their own investment in the marketplace. They also believe that each of the defendants was interested in “using their professional reputation and media exposure to represent FTX as a reliable and legitimate crypto exchange.”
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