Criticized by Reflexer, Has Paradigm Abandoned Its Faith in Encryption?

Yesterday, a piece of news about "a well-known encryption venture capital company; Paradigm; shifting its focus to the "AI" field, and deleting the official website encryption currency and Web3.0; expression" was released, and it quickly spread throughout the entire encryption industry.

With the fermentation of this incident, Paradigm; Invested; DeFi; Protocol Reflexer can't sit still. Today, Reflexer issued an article denouncing "Paradigm" for switching to the "AI" field and asking it to destroy its holdings; FLX (its governance token). Reflexer; tweeted, "Paradigm, remember when you invested; FTX;'s; 270; million dollars? FTX zeroing became a scar on our industry, and now you're repositioning away from cryptocurrencies? Destroy you All ;FLX; tokens, we don't want to work for you anymore."

This blaming proclamation inevitably made people wonder what virtue and grievance had there been between the two? The Odaily Planet Daily comes from the relationship between "Reflexer" and "Paradigm".

Reflexer; relationship with ;Paradigm;

Paradigm; as a cryptocurrency investment company, its investment goal has always been to support early cryptocurrency and blockchain projects, and help promote innovation and development in the cryptocurrency field, and its investment portfolio covers multiple fields, including; DeFi, blockchain Blockchain infrastructure, digital identity and privacy, and more.

Paradigm; has invested in well-known projects such as Uniswap, Compound, Anchorage, StarkWare, Optimism, Terra, Nervos, Solana; and another protagonist of this article; Reflexer; Finance.

Reflexer;Finance, which aims to build a stable currency system to solve the volatility problem in the cryptocurrency market, its governance token is; FLX, FLX; holders can participate in; Reflexer; protocol governance, including voting and making proposals.

And; Paradigm is Reflexer; one of the investors. At the beginning of 2021, Paradigm; participated as the lead investor; Reflexer 200; million US dollars in seed round financing. Paradigm; invested approximately; $100; million in this round, which also means that; Paradigm; held; FLX; tokens, and participated in the early development and governance of the "Reflexer" protocol.

The trigger for the relationship to become tense

Paradigm; recently revised the homepage of its official website, and the title of the homepage was changed from "Paradigm; as little as; $1 million; and as much as; $1; million or more to support disruptive encryption/Web3.0; companies and protocols" to "Paradigm; is a research-oriented technology investment firm" and removed expressions related to cryptocurrencies/Web3 such as "We believe cryptocurrencies will define the next few decades".

Netizens in the encryption community have speculated, is it that "Paradigm" is going to jump out of the encryption/Web3.0; field?

In order to avoid causing unnecessary panic, relevant people quickly stood up and said that this is just "Paradigm" repositioning in response to some thunderstorms in the encryption field and uncertainty in US regulation. In addition, this change does not mean that As the company shuns cryptocurrencies, the company has not changed its mission and continues to focus on cryptocurrencies and the Web;3; the updated website copy is designed to emphasize its technical research.

Reflexer proposes to break up

Some members of the encryption community believe that as the encryption industry; VC; leader; Paradigm; shifting from the cryptocurrency industry to the field of artificial intelligence, it deviates from the cryptocurrency community and supports its original values. And "Reflexer" became the leader of this attack movement and took the lead in speaking out.

In the tweet, Reflexer;referred to;Paradigm;the famous "Battle of Waterloo" - "a $2.7 billion investment in FTX". Paradigm;was one of the main backers of;FTX;, and when;FTX;finally collapsed, the investment evaporated. Paradigm; Lianchuang; Matt; Huang; also issued an apology for this, "We invested in a founder and company that ultimately did not conform to the values of cryptocurrency, and we are sorry for the huge damage caused to the encryption ecosystem."

Reflexer; also clearly stated in the tweet that this "irresponsible" investment has brought significant damage to the encryption ecosystem and is contrary to the principles of decentralization and transparency. At the same time, Reflexer; also believes that; Paradigm; is abandoning its commitment to the cryptocurrency industry and its stakeholders. Reflexer simply asked Paradigm to destroy all FLX holdings, and officially broke away from the only remaining bond with Paradigm, as if announcing, "If you turn to AI, we will never enter the river."

At present, Paradigm; officials have not responded to this matter.

Moreover, Paradigm; did not have any selling action, and still retained its previous position. Perhaps; Paradigm; has never changed its original intention as it promised, insists on the belief in the cryptocurrency ecosystem, and will continue to support and invest in promising innovative projects and companies in this field.

chain reaction

Perhaps, this "speech from the air" will trigger a series of chain reactions: the tension between Reflexer; and; Paradigm; may affect its future business relationship, limiting the cooperation opportunities of the two companies; and; Paradigm;'s criticism may damage; Paradigm;'s reputation in the cryptocurrency community and other investors, causing the market and community to lose confidence in; Paradigm;'s investment decisions.

In addition, "the role of investors, their values and principles for the industry, and what kind of responsibilities they should bear" may become a question for everyone to think about deeply. In the near future, the industry may conduct stricter scrutiny on investor behavior in order to maximize the protection of industry interests.

Odaily Planet Daily will also continue to pay attention to; Paradigm; the official answer to this incident.