Matt Huang, co-founder of the investment company Paradigm, is confident that decentralized finance (DeFi) will help increase the security and transparency of the cryptocurrency industry.
Matt Huang believes that FTX’s liquidity issues have caused many investors to question the value of cryptocurrencies. Huang acknowledges that the coming months will be difficult for the industry, but remains optimistic about its future development.
He believes that the risks of insolvency of cryptocurrency companies can be easily eliminated with the help of DeFi. According to Huang, the crisis faced by FTX has once again demonstrated the virtues of decentralization, which is at the heart of the concept of cryptocurrencies.
“We are shocked by the information about Alameda, FTX and its founder Sam Bankman-Fried. New facts about them are still emerging, so we still have many lessons to learn. But we deeply regret that we invested in a company that did not live up to the values of cryptocurrencies and caused huge damage to the ecosystem, ”said Paradigm co-founder.
He added that Paradigm’s investment in FTX was small. The company has never traded on FTX, held assets on an exchange, and has never invested in FTT, SRM, MAPS, or OXY crypto assets. This week, Paradigm management announced the launch of a $2.5 billion fund to fund DeFi protocols.
Recently, Binance CEO Changpeng Zhao expressed a similar sentiment, saying that with the development of the decentralized finance sector, there may be no need for centralized exchanges.
Source: Bits
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