Coinbase
- Coinbase's Fred Ehrsam and former Sequoia partner Matt Huang have raised $ 2.5 billion for Paradigm One.
- It has surpassed Andreessen Horowitz's crypto fund from earlier this year, which had raised $ 2.2 billion.
- The founders of Paradigm see the tokens as promising long-term investments.
After three years in the making, the largest crypto venture capital fund in history has arrived as Paradigm One finishes raising $ 2.5 billion.
It is the first venture capital fund of Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang, who launched Paradigm One in 2018 and raised an initial $ 400 million, according to the Financial times.
The $ 2.5 billion they ultimately raised is double their initial investment goal thanks to the help of other investors competing to contribute.
"It will probably be small relative to where we are going in 10 years," Ehrsam told the FT.
Now has expired Andreessen Horowitz Crypto Fund earlier this year, which had secured a record $ 2.2 billion backing. Both funds have bet heavily on a rapidly growing ecosystem of ethereum-based applications.
Paradigm One, like Andreessen Horowitz's fund, is based on tokens - digital assets granted to users over time.
While tokens can be highly volatile, rising and falling at the whims of crypto speculators, Paradigm One has amassed some of the largest token holdings in the world. And the founders of Paradigm see them as long-term holdings that could take up to 10 years to pay off.
"The largest companies in the world are large Internet technology companies driven by network effects," Ehrsam told the Financial Times. "We believe that in the coming decades it is very clear that the largest entities in the world will be powered by tokens."
