Coinbase co-founder Fred Ehrsam launches record cryptocurrency VC fund - FT

Coinbase co-founder Fred Ehrsam and Matt Huang, a former Sequoia Capital partner, raised $2.5B for Paradigm One, a cryptocurrency venture capital fund, twice the amount they had initially targeted, Financial Times reports. The fundraise follows Andreessen Horowitz's $2.2B VC raise for its new cryptocurrency fund, and may increase fears that crypto has entered bubble territory. Both firms are seeking to invest in ethereum blockchain, which allows programmers to write contracts that automatically execute functions such as money transfers, the FT said. Those programs use tokens, digital assets that users gain over time, which also may give then a say in how the system is run. The FT said Paradigm has accumulated large token holdings in the sector when in made early investments in development teams. Paradigm's first fund, which raised $400M in 2018, achieved an annual internal rate of return exceeding 200% through H1 2021, the FT said. In crypto price