November 16, 2022
Editor’s Note: This message from our founders was shared in our company-wide Slack channel.
Ego is the root cause of all suffering. This is truth.
Given the chaos in the markets, we wanted to check in and answer a few burning questions you might have vis-a-vis the health of our business.
What is Paradigm’s exposure to FTT and Alameda/FTX?
We have no exposure to FTT and we have none of our reserves tied up in tokens or on the exchange. With regards to funding, we are very comfortable and have xx1 months of runway. 🙏
Alameda was an investor in Paradigm, but we have no exposure to Alameda.
While we were excited about the growth potential of our FTX partnership, it was a new offering and therefore a small contributor (13%) to our revenue. In the grand scheme of things, this revenue opportunity can be earned back given several new exchange partnerships (Bybit, BitMEX and more) that are going live, with many others in the pipeline. Paradigm had excellent product-market fit before FTX and that continues to this day. It is true that though small, FTX was our fastest growing venue. However, if you look closely (chart below), even without FTX volumes, our business continues its growth trajectory with new all-time highs in 5 out of the 6 previous months! 🔥
Monthly Volumes (ex FTX)
Bear markets are for building, so we keep our heads down, stay lean and keep chipping away! Markets realized the true meaning of credit risk (the hard way), and it won’t be long until the users demand solutions and business models that are free from credit/custody risk but also provide the greatest flexibility and access to assets, venues, instruments and protocols all in one place! Paradigm stands ready! 🏄
Micki and Anand
1Numbers have been redacted.