Not playing Web3? Cryptocurrency venture capital firm Paradigm deletes introductions to crypto-related companies, is it a betrayal or a diversified strategy?

The risk investment firm Paradigm, which focuses on the cryptocurrency industry, was discovered this morning, the 26th, to have removed key words related to cryptocurrency and Web3 from its official website. However, it also indicated that it will continue to pay attention to the crypto field, shifting some focus to cutting-edge technologies such as artificial intelligence.

Paradigm Removes All Cryptocurrency Content from Website, Accused of Abandoning Industry

According to The Block, prominent venture capital firm Paradigm has altered the description on its website from "backing companies and protocols that are disruptive to crypto or Web3" to "a technology investment firm focused on research," removing the statement "we believe crypto will define the next decades" and eliminating any mention of web3 or blockchain from their company introduction.

This move has sparked discussions as Paradigm, known as a leader in the crypto industry VC sector, seems to be turning away from the crypto industry and shifting towards the AI trend.

What Prompted Paradigm's Decision?

Paradigm, founded in 2018 by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang, is a venture capital fund focused on investments in the crypto sector. In November 2021, they raised $2.5 billion, the largest amount ever raised in crypto history at that time. Since its inception, Paradigm has invested in over 100 crypto startups.

Many believe that Paradigm's avoidance of cryptocurrencies is due to the unclear regulatory environment in the United States and the recent crackdown on numerous companies by regulatory authorities in the past two years. To avoid potential trouble or risks associated with their investment targets being exposed, they had to make this decision.

Additionally, according to sources cited by The Block:

It is mentioned that Paradigm's portfolio still includes dozens of companies related to cryptocurrencies, decentralized finance, and NFTs.

Expanding Focus to AI

Co-founder of Chainfeeds, Zhihong Pan, pointed out that Paradigm's move is foreseeable, including their development of a simple ChatGPT tool, and since November last year, co-founder Matt Huang has been more frequently mentioning AI-related terms on Twitter.

However, as mentioned earlier, this change does not signify the company avoiding or abandoning cryptocurrencies but rather expanding their influence and investment landscape into related fields. Perhaps for Paradigm, with a substantial amount of capital at their disposal, the current thriving environment of AI compared to the lackluster crypto market presents an opportune time to diversify their portfolio.