Ethereum needs Paradigm, VCs, despite value extraction concerns: Joseph Lubin

The main goal of VCs is to "suck as much value as possible” from Ethereum, but they remain necessary bridges for global capital entering the crypto industry, according to Lubin.

Ethereum co-founder and Consensys founder Joseph Lubin highlighted the importance of venture capital (VC) funding for the development of the world's largest smart contract network, despite growing industry concerns over the influence of investment funds on Ethereum.

The main goal of VCs like Paradigm is to "suck as much value as possible from the Ethereum and broader ecosystem," while their secondary goals include "progressing the systems towards rigorous decentralization," wrote Lubin in a Monday X post, adding that there is “no reason for concern.”

Lubin's comments come shortly after the departure of two key Ethereum researchers, which caused renewed concerns over the potential influence of centralized funds over Ethereum’s development.

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