In the announcement on the evening of October 24th, co-founder Fred Ehrsam resigned as the Managing Partner at the crypto venture capital fund Paradigm.
Accordingly, the co-founder of the Coinbase exchange will step back to become the General Partner of the fund. Fred Ehrsam stated, “I’ll continue to work with our investing & research teams, work with portfolio companies, and fight for good crypto policy while focusing less on the day-to-day management of the firm.”
The Information also revealed that Paradigm is planning to establish a new fund. Last month, Chief Financial Officer (CFO) Nathan Apsel and General Counsel Reena Jashnani-Slusarz left the fund. Currently, the remaining two Managing Partners of Paradigm are co-founder Matt Huang and Chief Operating Officer Alana Palmedo.
Ehrsam, along with Matt Huang, co-founded Paradigm in 2018 after collaborating with Brian Armstrong to develop the Coinbase exchange in the U.S. In November 2021, Paradigm successfully raised $2.5 billion, becoming the largest-valued fund in the history of the crypto industry at that time. Ehrsam confidently asserted, “I have spent over a decade in crypto, and I am more confident than ever that this will be one of the most world-changing technologies in the decades to come.”
However, the investment fund removed all crypto and web3-related keywords from its platform, declaring a shift to AI focus in May but restoring them two months later. Currently, crypto investments are slowing down, even reaching the lowest level in three years amid the prolonged crypto winter. Therefore, the restructuring of personnel, as seen in Paradigm, is inevitable.
Paradigm is considered a prominent investment fund in the industry, having invested in DEX Uniswap and the now-bankrupt FTX exchange. Earlier this month, Paradigm’s Huang appeared as a witness in the legal proceedings against former CEO Sam Bankman-Fried.