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.
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