The post Ethereum co-founder defends VC role amid Paradigm influence fears appeared on BitcoinEthereumNews.com.

Ethereum co-founder Joseph Lubin said venture capital firms like Paradigm try to make profit but still help bring money and support into the Ethereum ecosystem. Lubin posted on X and said Paradigm and other venture capitalists (VCs) want to to take as much value as they can from Ethereum and the wider ecosystem. He explained that their role is normal and only temporary as the industry keeps growing. His comments came as the community discussed the growing influence of big investment funds on the governance and research of Ethereum.  Lubin says VCs help connect global capital to the growth of Ethereum Joseph Lubin said VCs take ideas and projects that begin in decentralized communities and make them ready for the traditional investors who control large amounts of global capital. He explained that many global investors do not yet fully understand crypto or trust it enough to invest directly, so VCs offer them familiar systems for managing money, checking projects, and protecting investments. This effort allows more capital to enter the crypto industry and reduces the feature that comes with new and unfamiliar technology. “We need VCs for now because they represent a comfortable bridge for the world’s capital to flow into our ecosystem.” the Ethereum co-founder said. Some people believe the influence of VCs is a risk to decentralization, but he sees it as a temporary phase. Lubin said Ethereum needs to work with the current financial system while building tools that will one day replace it. The co-founder of Ethereum also said new and fair “onchain investment platforms” will allow anyone, anywhere in the world, to invest in projects using tokens and smart contracts instead of going through large investment firms.  “Very soon better, fairer, more broadly accessible onchain investment platforms with healthy tokenomics will mature sufficiently so that…

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Filed under: News - @ October 21, 2025 2:16 am