Paradigm Investment Area
Paradigm, a venture capital firm focused on crypto assets (virtual currency), is expanding its investment area to so-called “frontier technologies” including AI (artificial intelligence). Meanwhile, mentions of virtual currency and Web3 (decentralized web) have been removed from the homepage of the company’s website.
Paradigm is known as an influential investment firm in the cryptocurrency market. According to a report dated 25th by The Block, an overseas cryptocurrency media outlet, the company continues to be interested in cryptocurrencies and Web3, and said that the website change is to emphasize its focus on frontier technology. Explaining.
What is frontier technology?
It refers to all technologies that are under development and have hidden potential. Examples include AI (artificial intelligence), quantum computers, robotics, nano/micro, bio, and space exploration.
Prior to May 3, Paradigm listed investments in “innovative crypto/Web3 companies and protocols,” according to the Internet Archive. Today, however, it is described as a “research-driven technology investment firm.” It also removed the sentence, “We believe cryptocurrencies will define the next few decades.”
Paradigm was launched in 2018 by Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang. In November 2021, it raised 350 billion yen ($2.5 billion) as the largest venture fund dedicated to cryptocurrencies in history at the time. The company’s website still showcases a number of cryptocurrency-related portfolios, including well-known companies such as decentralized exchange Uniswap, NFT marketplace OpenSea, and Layer 2 technology company Starkware.
connection:Paradigm and FTX Ventures invest 2 billion yen in DeFi project of former Amazon veteran
Changes in the investment market
With the cryptocurrency market facing a bear market in 2022, cryptocurrency companies going bankrupt one after another, and regulatory uncertainty increasing in the United States, Paradigm is expanding into new technological areas. When former major cryptocurrency exchange FTX filed for bankruptcy in November 2022, Paradigm fully wrote off its $290 million investment in the company, reducing its valuation to zero. This effectively gave up any prospect of future earnings or value from the company.
Interest in AI is rapidly increasing due to the influence of OpenAI’s language model ChatGPT, which was released in November 2010 and has exploded in popularity. However, data from CB Insights shows that while there were five new AI unicorns in Q1 2023, the same number as in the previous quarter, overall AI-related funding is trending downward. . Still, Silicon Valley appears to be anticipating a recovery in investment opportunities.
There is currently a lot of discussion within the industry about how AI and blockchain technology can be integrated. AI-driven bots are also working with wallet addresses to conduct transactions using the stablecoin USDC.
“AI and blockchain are very compatible because of the ability to link data, automatically generate and execute smart contracts, and exchange value between AIs,” said Jeremy Allaire, co-founder and CEO of USDC issuer Circle. argues Mr.
Completely agree. AI and Blockchains are made for each other. Provenance of data, machine generated and enforced contracts, and machine to machine value exchange. We are already hearing about AI Bots spinning up on-chain wallets and using USDC. https:// t.co/BwmdGdVufJ
— Jeremy Allaire (@jerallaire) May 25, 2023
Meanwhile, Hunter Horsley, CEO of crypto investment firm Bitwise, said public/private key cryptography was the solution to problems of generative AI such as spoofing, deepfakes, duplication of works, and identification of creators and subjects. He pointed out that the building blocks of blockchain, such as zero-knowledge proofs and zero-knowledge proofs, play an important role.
He also said AI could be a key trigger for the next bull market in cryptocurrencies, as autonomous AI agents could take advantage of DeFi elements such as escrow.
connection:Solana Introduces ChatGPT to Blockchain and Promotes Use of AI