- Paradigm’s CEO reveals how they rebuilt after FTX and SVB collapse.
- Paradex offers better liquidity, privacy, and self-custody than centralized exchanges.
- Innovative perpetual options provide users with protection against price-driven liquidations.
Paradigm’s CEO, Anand, has opened up about how his team weathered the chaos following the FTX and Silicon Valley Bank (SVB) collapses. Speaking candidly about the impact on the company, he detailed how the firm’s massive futures business, which handled half a billion dollars a day on FTX, vanished almost overnight. At the same time, Paradigm’s treasury, with 60 percent of its funds held at SVB, was compromised.
This crisis was a perfect storm for Paradigm. Around 70 percent of the company’s top clients went bankrupt due to the FTX collapse, causing massive financial turmoil. To add to the strain, the USDC stablecoin faced de-peg risks, further threatening the firm’s operations. Despite these immense challenges, Anand and his team decided to push forward, doubling down on their mission to create Paradex—a decentralized exchange designed to remove the risks associated with centralized exchanges.
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Paradigm’s Shift to On-Chain Solutions
Founded in 2019, Paradigm initially provided a tool to institutional crypto traders who struggled to execute large block orders without revealing their positions. This led to the development of an automated Request for Quote (RFQ) system, allowing institutions to access deep liquidity while maintaining privacy. Today, the platform processes between $1 billion and $1.5 billion daily, with up to $5 billion on peak days.
With about 3,000 onboarded institutions and 500 active users daily, Paradigm has become a major player in institutional crypto options, handling nearly 35 percent of Deribit’s market activity. However, the risks of centralized exchanges like FTX made it clear that Paradigm needed a more secure, decentralized approach.
Paradex and the Future of Crypto Trading
Paradex was born out of the need to offer a safer, decentralized alternative to centralized exchanges. Anand noted that the platform already provides better liquidity than Binance for large orders, while offering users the privacy and self-custody advantages of decentralization.
The introduction of perpetual options is a major innovation on Paradex. These new derivatives combine the mechanics of perpetual futures with the risk mitigation of traditional options, giving traders a safety net against price-driven liquidations. Anand believes this innovation will simplify options trading, making it more accessible to a wider range of users in the crypto space.
In the face of a financial storm, Paradigm has demonstrated resilience. With Paradex now in full swing, the company is setting its sights on capturing the growing demand for decentralized solutions and perpetual options in the wake of FTX’s collapse.
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