{"id":510546,"date":"2022-11-16T05:27:01","date_gmt":"2022-11-16T02:27:01","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/paradigm-co-founder-feels-deep-regret-investing-in-sbf-and-ftx\/"},"modified":"2022-11-16T05:27:01","modified_gmt":"2022-11-16T02:27:01","slug":"paradigm-co-founder-feels-deep-regret-investing-in-sbf-and-ftx","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/paradigm-co-founder-feels-deep-regret-investing-in-sbf-and-ftx\/","title":{"rendered":"# Paradigm co-founder feels &#8216;deep regret&#8217; investing in SBF and FTX"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d5081b5a7d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d5081b5a7d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/paradigm-co-founder-feels-deep-regret-investing-in-sbf-and-ftx\/#%E2%80%9D_Paradigm_co-founder_feels_%E2%80%98deep_regret_investing_in_SBF_and_FTX_%E2%80%9C\" >&#8221; Paradigm co-founder feels &#8216;deep regret&#8217; investing in SBF and FTX &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Paradigm_co-founder_feels_%E2%80%98deep_regret_investing_in_SBF_and_FTX_%E2%80%9C\"><\/span>&#8221; Paradigm co-founder feels &#8216;deep regret&#8217; investing in SBF and FTX &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-887bb764>The co-founder of asset management firm Paradigm says they feel \u201cdeep regret\u201d for having invested in FTX amid recent revelations involving FTX, Alameda Research, and Sam Bankman-Fried.\u00a0<\/p>\n<p>In a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/matthuang\/status\/1592595241453776896\">post<\/a> on Nov. 15, Matt Huang, co-founder and managing partner of Paradigm said the firm is \u201cshocked\u201d by the revelations surrounding the two companies and their founder, adding: <\/p>\n<blockquote><p>\u201cWe feel deep regret for having invested in a founder and company who ultimately did not align with crypto\u2019s values and who have done enormous damage to the ecosystem.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-11\/2175a70b-0139-4cc5-b551-9e7364f2c406.jpg\"><figcaption style=\"text-align: center;\">Matt Huang, Managing Partner and Co-Founder of Paradigm Source: Paradigm<\/figcaption><\/figure>\n<p>Paradigm is a crypto and Web3-focused venture capital firm based in San Francisco. In April reports suggested the firm\u2019s assets under management totaled <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximately $13.2 billion.\u00a0<\/p>\n<p>In Nov. 2021, the firm announced a $2.5 billion New Venture Fund, which dethroned Andreesen Horowitz\u2019s (a16z) as the largest venture fund in crypto. <\/p>\n<p>The firm\u2019s website currently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.paradigm.xyz\/portfolio\">lists<\/a> FTX and FTX.US in its portfolio. Reports <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2022\/11\/11\/technology\/ftx-investors-venture-capital.html\">suggest<\/a> its investment in the exchange is around the $278 million mark. <\/p>\n<p>Huang said that Paradigm\u2019s equity investment in FTX only constituted \u201ca small part of our total assets,\u201d adding that it has now written its FTX investment down to $0. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">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 who ultimately did not align with crypto\u2019s values and who have done enormous damage to the ecosystem.<\/p>\n<p>\u2014 Matt Huang (@matthuang) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/matthuang\/status\/1592595243907526656?ref_src=twsrc%5Etfw\">November 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He also assured that the firm has never traded on FTX or has ever invested in tokens linked to the exchange, including FTX Token (FTT), Serum token (SRM), Maps.ME Token (MAPS), or the Oxygen Protocol token (OXY).<\/p>\n<p>\u201cWe never traded on FTX and did not have any assets on the exchange. We have never been investors in related tokens such as FTT, SRM, MAPS, or OXY.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>FTX bankruptcy freezes millions worth of crypto company funds<\/em><\/strong><\/p>\n<p>Since posting the tweet, a number of Twitter users challenged whether the firm did enough due diligence prior to investing in FTX. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">you guys made a bad bet. you didn\u2019t do your due diligence. and your endorsement led others to believe in &amp; support the fraud that was SBF\/FTX<\/p>\n<p>that was very bad, and i hope you\u2019ll strive to do better<\/p>\n<p>but i respect taking the L and publicly owning up to it. that is the right move<\/p>\n<p>\u2014 DCinvestor.eth \u2310\u25e8-\u25e8 (@iamDCinvestor) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/iamDCinvestor\/status\/1592606766755291136?ref_src=twsrc%5Etfw\">November 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Speaking to Cointelegraph, CK Zheng, co-founder of digital assets hedge fund ZX Squared Capital reflected that in hindsight, many venture capital firms may not have done the proper due diligence on FTX and its executive team, commenting:<\/p>\n<blockquote><p>\u201cThey don\u2019t have a very good governance process, don\u2019t have a board. It\u2019s basically a one-man show.\u201d<\/p><\/blockquote>\n<p>\u201cI\u2019m sure when a young company starts to build the company with sophisticated <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> [&#8230;] I can see how things can go bad quickly if they don&#8217;t have a good understanding of the technology married with finance.\u201d <\/p>\n<p>\u201cObviously, they\u2019re smart in one aspect, but they\u2019re running a $32 billion company is very different than, you know, when you manage a small company,\u201d he added.<\/p>\n<p>Investors to have recently marked down their FTX investments include Sequoia Capital, which wrote off its roughly $210 million investment on Nov. 10, Ontario Teachers\u2019 Pension Plan, which invested $95 million in the crypto exchange, and SoftBank Group Corp., which is <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-11\/softbank-is-said-to-expect-about-100-million-loss-on-ftx-stake\">expected<\/a> to write down a nearly $100 million investment.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"consulting_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/paradigm-co-founder-feels-deep-regret-investing-in-sbf-and-ftx\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Paradigm co-founder feels &#8216;deep regret&#8217; investing in SBF and FTX &#8220; The co-founder of asset management firm Paradigm says they feel \u201cdeep regret\u201d for having invested in FTX amid recent revelations involving FTX, Alameda Research, and Sam Bankman-Fried.\u00a0 In a Twitter post on Nov. 15, Matt Huang, co-founder and managing partner of Paradigm said&#8230;<\/p>\n","protected":false},"author":1,"featured_media":510547,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvM2VhMmY4YzktNjVkYy00ZDQyLWE3ZjItMjAyOTk3ZDE0YTZhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[135234,127241,89897,117,73711,71745],"class_list":["post-510546","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-ftx","tag-ftx-token","tag-sam-bankman-fried","tag-business","tag-investments","tag-venture-capital"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=510546"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/510546\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/510547"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=510546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=510546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=510546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}