Venture Capitalists Betting Big on Altcoin Season: Paradigm Eyes Record $850 Million Raise

Wednesday, 3 April 2024, 10:13

Venture capitalists are gearing up for a potential altcoin season as Paradigm aims to secure a monumental $850 million funding round. This move reflects a resurgence in the crypto market and VCs' growing optimism towards altcoins and AI-crypto projects.
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Venture Capitalists Betting Big on Altcoin Season: Paradigm Eyes Record $850 Million Raise

How Venture Capitalists Are Preparing For Altcoin Season

The venture capital arena in the crypto sector has been tumultuous. According to Bloomberg, Paradigm's potential new fund is poised to become the largest since the market's crash. This move is reminiscent of the peak in May 2022 when Andreessen Horowitz (a16z) set a record with a $4.5 billion fund.

Despite the sharp market correction that followed, Bitcoin and the broader crypto market have restarted the bull rally. Paradigm had previously set a record with a $2.5 billion fund in 2021, highlighting the sector's cyclical investment trends.

VCs typically invest in emerging crypto projects, which often see a significant increase in value during the altcoin season following Bitcoin's peak. Paradigm’s investment strategy, including its significant but ill-fated investment in FTX, highlights the sector's high-risk, high-reward nature.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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