Web3 and the investment fund focused on blockchain ABCDE are stopping new investments, but the $ 400 million fund is still committed to support their existing projects.
In a post of April 19, the co -founder of ABCDE and founder of Huobi Exchange, Du Jun, said that the $ 400 million fund will no longer invest in new projects or collect capital for the second phase of the fund.
However, Jun said the Fund will continue with the “Support and Departure Agreements subsequent to the investment of existing projects” to guarantee the company’s commitment to entrepreneurs and liquidity suppliers (LPS).
“My personal work approach will also gradually change the financial investment in the primary market for strategic investment led by investment and based on deep incubation, focusing more on industrial synergy and the creation of long -term value,” Jun added.
The announcement occurs almost three months after ABCDE’s last investment in an Ethereum Layer-2 (L2) solution, soon (Solana Optimistic Network), which raised $ 22 million through a sale of not fungible token to commemorate the launch of its netnet, Cointelegraph reported on January 22.
The Mainnet soon claims to overcome Solana in speed and efficiency, delivering average block times of 50 milliseconds compared to the 400 milliseconds of Solana.
ABCDE is a $ 400 million fund, with 28% of its investments in the Bitcoin (BTC) scale technology, 16% in the infrastructure of finance derivatives of stagnation of Ethereum Liquid (LSDFI) and an additional 12% invested in L2S, restorations and intelligent contract platforms, Cryptorank’s data shows.
ABCDE has invested more than $ 40 million in capital in more than 30 projects in the last three years, with an internal rate of performance (IRR) “still at the level of global leadership,” despite the current market environment, said Jun.
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NEW VERNAL INCUBATOR BRAND ANNOUNCED
The suspension of ABCde of the fundraising efforts was announced one month after the co -founder of the Fund launched a new mark of incubators, vernal.
The new incubator will announce its shareholders and incubation rules for the first batch of projects in May, along with its first investments.
Jun said that the decision to stop the fundraising efforts of ABCDE was not taken due to financial limitations or lack of funds, but for a fundamental concern for the current development trajectory of the cryptographic industry.
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“Frankly speaking, I can not agree with the current ecological atmosphere of the primary market,” Jun said in a April 19 x post, added:
“Many projects are extremely myopic and only think about how to appear in the exchange as soon as possible, and what is left behind is often a disaster.”
“What is more worrying is that some main funds not only have no reflection on this, but also promote their” listed projects “and the short -term market value performance, but never mention the creation of the value of the projects themselves,” he added.
The founder of Cardano, Charles Hoskinson, has urged fourth -generation cryptocurrency projects to adopt a more collaborative tokenomic to compete with the main centralized technological companies that enter the cryptographic industry.
“The problem at this time, with the way we have done things in the cryptocurrency space, is the tokenomics and market structure are intrinsically adverse. It is sum 0,” said Hoskinson in Paris Blockchain Week on April 9. “Instead of choosing a fight, what you have to do is find the structure of the tokenomics and the market that allows you to be in a cooperative balance.” “
“You cannot build a global ecosystem in this way, and cannot win in this way,” he added. “Because here is the thing. The headlines are much bigger.”
https://www.youtube.com/watch?v=kqzhvt77xkw
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