{"id":11230,"date":"2025-04-19T12:13:44","date_gmt":"2025-04-19T10:13:44","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=11230"},"modified":"2025-04-19T12:13:44","modified_gmt":"2025-04-19T10:13:44","slug":"abcde-closes-doors-on-new-investments-and-fundraising-for-its-400m-web3-initiative","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/04\/19\/abcde-closes-doors-on-new-investments-and-fundraising-for-its-400m-web3-initiative\/","title":{"rendered":"ABCDE Closes Doors on New Investments and Fundraising for Its $400M Web3 Initiative"},"content":{"rendered":"

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The investment fund ABCDE, concentrated on Web3 and blockchain technologies, is halting fresh investments, although the $400 million fund remains steadfast in its support for ongoing projects.<\/p>\n

In a post on April 19 via X, co-founder Du Jun<\/a>, who also established the Huobi exchange, stated that the fund will not pursue further investments in new ventures or collect additional capital for its second phase.<\/p>\n

Nonetheless, Jun indicated that the fund will persist in providing \u201cpost-investment support and exit plans for existing projects,\u201d to affirm the organization\u2019s dedication to entrepreneurs and liquidity providers (LPs).<\/p>\n

\u201cMy personal focus will gradually transition from financial investments in the primary market to strategic investment-led initiatives and intensive incubation, concentrating more on industry synergy and long-term value generation,\u201d Jun emphasized.<\/p>\n

Source: <\/em>Du Jun<\/em><\/a><\/figcaption><\/figure>\n

This announcement follows almost three months after ABCDE\u2019s latest investment in an Ethereum layer-2 (L2) solution,<\/a> Soon (Solana Optimistic Network), which secured $22 million<\/a> through a non-fungible token sale in conjunction with the launch of its mainnet, as reported by Cointelegraph on January 22.<\/p>\n

\"Investments,
SOON block times, in comparison to other blockchains. Source: SOON<\/em><\/figcaption><\/figure>\n

The Soon mainnet claims to outpace Solana in terms of speed and efficiency, achieving an average block time of 50 milliseconds versus Solana\u2019s 400 milliseconds.<\/p>\n

ABCDE is operating a $400 million fund, with 28% of its allocations in Bitcoin (BTC<\/a>) scaling technologies, 16% in Ethereum liquid staking derivatives<\/a> finance (LSDFi) infrastructure, and an extra 12% implicated in L2s, restaking, and smart contract platforms, as depicted in Cryptorank<\/a> data.<\/p>\n

ABCDE investments focus area, average round size. Source: <\/em>Cryptorank<\/em><\/a><\/figcaption><\/figure>\n

Over the past three years, ABCDE has allocated more than $40 million across over 30 projects, with an internal rate of return (IRR) \u201cstill at a globally leading level,\u201d even amidst the current market conditions, Jun remarked<\/a>.<\/p>\n

Related: <\/strong><\/em>Trump’s family memecoins may prompt increased SEC scrutiny on crypto<\/strong><\/em><\/a><\/p>\n

New incubator brand Vernal announced<\/h2>\n

The cessation of fundraising efforts by ABCDE was revealed a month following the co-founder’s introduction of a new incubator brand, Vernal.<\/p>\n

\"Cryptocurrencies,
Source: Du <\/em>Jun<\/em><\/a><\/figcaption><\/figure>\n

The new incubator intends to announce its stakeholders and incubation protocols for the initial wave of projects in May, in addition to its inaugural investments.<\/p>\n

Jun clarified that the choice to suspend ABCDE\u2019s fundraising was not motivated by financial limitations or a shortage of resources, but rather a fundamental worry concerning the current trajectory of development within the crypto sector.<\/p>\n

Related: <\/strong><\/em>Crypto and stocks enter a \u2018new phase of trade conflict\u2019 as US-China tensions escalate<\/strong><\/em><\/a>.<\/strong><\/em><\/p>\n

\u201cHonestly, I increasingly find it difficult to concur with the prevailing ecological climate of the primary market,\u201d Jun noted in an April 19 X post<\/a>, further stating:<\/p>\n

\u201cNumerous projects exhibit extreme short-sightedness, fixated on how quickly they can get listed on an exchange, leaving a chaotic aftermath.\u201d<\/p><\/blockquote>\n

\u201cWhat concerns me more is that certain primary funds not only fail to reflect on this reality but also amplify the hype surrounding their \u2018listed projects\u2019 and short-term market value, neglecting the actual value creation of those projects,\u201d he added.<\/p>\n

Cardano’s founder Charles Hoskinson has called for<\/a> fourth-generation cryptocurrency projects to adopt more collaborative tokenomics to effectively compete against major centralized tech firms entering the crypto landscape.<\/p>\n

\"Cryptocurrencies,
Charles Hoskinson. Source: <\/em>Cointelegraph<\/em><\/a><\/figcaption><\/figure>\n

\u201cThe current challenge with our approach in the cryptocurrency arena is that tokenomics and market structures are fundamentally adversarial. It\u2019s a zero-sum game,\u201d Hoskinson stated at the Paris Blockchain Week on April 9. \u201cRather than engaging in conflict, it is crucial to discover tokenomics and market structures that facilitate cooperative equilibrium.\u201d<\/p>\n

\u201cOne cannot cultivate a global ecosystem under these circumstances, and victory is unattainable this way,\u201d he insisted. \u201cThe reality is that incumbents are significantly larger.\u201d<\/p>\n

https:\/\/www.youtube.com\/watch?v=KQZhVT77xKw[\/embed><\/p>\n

Magazine: <\/strong><\/em>Your AI \u2018digital twin\u2019 can attend meetings and provide comfort to your loved ones<\/strong><\/em><\/a><\/p>\n