"Ethereum still needs venture capital's 'capital-raising ability'"

Recently, amid criticism in the virtual asset (cryptocurrency) industry over the excessive influence of venture capital (VC), a claim has emerged that Ethereum (ETH) still needs the investment capital-raising ability that venture capital possesses.

On the 21st (KST), according to crypto-focused media Cointelegraph, Ethereum co-founder and ConsenSys CEO Joseph Lubin wrote on his X (formerly Twitter) that "the primary aim of VCs like Paradigm is to absorb as much value as possible from Ethereum and its ecosystem, but they also play a role in driving progress toward decentralization," and argued that "there is no reason to be concerned."

Lubin's remarks came shortly after two key Ethereum researchers left the Ethereum Foundation to join Tempo, a payment-focused Layer 1 project led by Paradigm. Former Ethereum Foundation researcher Dankrad Feist joined Tempo, which is being developed by Stripe and Paradigm, and former ConsenSys researcher Malesh Pai also joined Tempo after advising Paradigm.

Some criticized Paradigm's influence as excessive, but Lubin said, "This rather suggests that traditional finance is indicating an entry into the crypto industry."

He added, "Currently we still need VCs as a comfortable bridge for global capital to enter the blockchain ecosystem," and predicted, "Sooner or later, as fairer and more accessible on-chain investment platforms mature, VCs will have to operate within them."