Yale University Invests in the Crypto Market

The Ivy League institution Yale University has made a significant investment in a new cryptocurrency project called Paradigm.

Yale Investments Office

Photo from http://investments.yale.edu/

What is Paradigm?

Paradigm is a new project started by Fred Ehrsam, Co-Founder of Coinbase, along with Mark Huang of Sequoia Capital and Charles Noyes from Pantera Capital. They plan to invest in early stage projects in new cryptocurrencies, exchanges, and blockchains. Paradigm has already attracted $400 million in investment, yet it is unclear what part of it came from Yale.

Yale investments

Yale University attracts yearly a $30 billion endowment, second largest after Harvard in the United States. The investment fund has been handled by David Swensen for over 30 years with huge success; Yale has returned 11.8% on average for the past 20 years, according to Bloomberg. Swensen is famous for making savvy investments and his trust in the Paradigm project can boost confidence in the cryptocurrency market as a whole.

This is not even the first investment Swensen made in the crypto market; according to CNBC, Yale has already invested money from their endowment in the Silicon Valley venture capital firm Andreessen Horowitz, which raised a $300 million crypto investment fund.

What does this mean for the crypto market?

Global Charts

After the huge run at the end of 2017, the cryptocurrency market ended off with a $800 billion market capital and continued with a sluggish downturn in 2018, currently at $217 billion.

The market has been labeled as a bubble (“rat poison” by Warren Buffet) due to the high volatility, lack of regulation, and cyber attacks. These fears have held back investors, who would risk that the value of their digital assets would drop overnight, got hacked, and stolen or banned by regulators. All of these contributed to the drop in value and faith in cryptocurrencies.

Thankfully, trust is returning to this promising market. Market experts, such as Mike Novogratz, are predicting the comeback of digital currencies and that the current stage is the lowest point we are experiencing. Regulatory agencies such as SEC and CFTC are hunting down bad actors.

Governments have put cryptocurrencies and blockchain on their fast track agenda. The cryptomarket is issuing newer and better security measures (such as built-in functions in cold wallets) to ensure the safety of funds.

More and more big corporations and investment funds, such as the one from Yale, are turning their heads to this brand new financial market. This means that the trust in the crypto market is increasing; more and more investors believe in the long-term return on investment of the new digital assets.

To know more, see how the Congress is learning about blockchain, what Mike Novogratz says about the new rally in the crypto market, or Goldman Sach’s investment in blockchain!

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