Yesterday, a piece of news about "the well-known crypto venture capital firm Paradigm will shift its focus to the AI ​​​​field and delete the official website cryptocurrency and Web3.0 expressions" was released, and it quickly spread throughout the crypto industry.

As this incident unfolded, the DeFi protocol Reflexer, which Paradigm invested in, couldn't sit still. Today, Reflexer issued an article denouncing Paradigm for switching to the AI ​​​​field and asking it to destroy its holdings of FLX (its governance token). Reflexer tweeted, "Paradigm, remember the $270M you invested in FTX? FTX going to zero became a scar on our industry and now you're repositioning away from crypto? Please destroy all your FLX tokens , we don't want to work for you anymore."

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Relationship between Reflexer and Paradigm

As a cryptocurrency investment company, Paradigm's investment goal has always been to support early cryptocurrency and blockchain projects, and help promote innovation and development in the cryptocurrency field. Its investment portfolio covers multiple fields, including DeFi, 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 aims to establish a stable currency system to solve the volatility problem in the cryptocurrency market. Its governance token is FLX, and FLX holders can participate in the governance of the Reflexer protocol, including voting and making proposals.

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A source of tension

Paradigm recently revamped the homepage of its official website from "Paradigm backs disruptive crypto/Web3.0 companies and protocols with as little as $1 million and as much as $100 million+" to "Paradigm is a research oriented technology investment firm” and deleted expressions related to cryptocurrencies/Web3 such as “we believe cryptocurrencies will define the next few decades”.

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

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Reflexer proposes to break up

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

In the tweet, Reflexer referred to Paradigm’s famous “Battle of Waterloo” — “$270 million investment in FTX.” Paradigm was one of the main backers of FTX, and when FTX eventually collapsed, the investment evaporated. Paradigm co-founder Matt Huang also apologized 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 made it clear in a 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 fetters with Paradigm, as if to announce, "If you switch to AI, we will not enter the river from now on."

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

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chain reaction

Perhaps, this "speech in 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 Reflexer's criticism of Paradigm may damage Paradigm's reputation among the cryptocurrency community and other investors has caused the market and the 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 will also continue to pay attention to Paradigm's official response to this incident.