{"id":127522,"date":"2025-04-19T10:28:26","date_gmt":"2025-04-19T10:28:26","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127522"},"modified":"2025-04-19T10:28:26","modified_gmt":"2025-04-19T10:28:26","slug":"400m-web3-investment-fund-abcde-halts-new-investments-fundraising","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127522","title":{"rendered":"$400M Web3 investment fund ABCDE halts new investments, fundraising"},"content":{"rendered":"

Source: Cointelegraph.com NewsWeb3 and blockchain-focused investment fund ABCDE is halting new investments, but the $400 million fund remains committed to supporting its existing projects.
\nIn an April 19 X post, ABCDE co-founder and Huobi exchange founder Du Jun said the $400 million fund will no longer invest in new projects or raise capital for the second phase of the fund.
\nHowever, Jun said the fund will continue to \u201cpost-investment support and exit arrangements of existing projects\u201d to ensure the firm\u2019s commitment to entrepreneurs and liquidity providers (LPs).
\n\u201cMy personal work focus will also gradually shift from financial investment in the primary market to strategic investment-led and deep incubation-based, focusing more on industrial synergy and long-term value creation,\u201d Jun added.
\nSource: Du JunThe announcement comes nearly three months after ABCDE\u2019s last investment into an Ethereum\u00a0layer-2 (L2) solution,\u00a0Soon (Solana Optimistic Network), which\u00a0raised $22 million through\u00a0a non-fungible token sale to mark the launch of its mainnet, Cointelegraph reported on Jan. 22.
\nSOON block times, compared to other blockchains. Source: SOONThe Soon mainnet claims to outperform Solana in speed and efficiency, delivering average block times of 50 milliseconds compared to Solana\u2019s 400 milliseconds.
\nABCDE is a $400 million fund, with 28% of its investments in Bitcoin (BTC) scaling technology, 16% in Ethereum liquid staking derivatives finance (LSDFi) infrastructure, and an additional 12% invested in L2s, restaking and smart contract platforms, Cryptorank data shows.
\nABCDE investments focus area, average round size. Source: CryptorankABCDE has invested over $40 million worth of capital into over 30 projects over the past three years, with an internal rate of return (IRR) \u201cstill at the global leading level,\u201d despite the current market environment, Jun said.
\nRelated: Trump family memecoins may trigger increased SEC scrutiny on crypto
\nNew incubator brand Vernal announced
\nABCDE\u2019s suspension of fundraising efforts was announced a month after the fund\u2019s co-founder launched a new incubator brand, Vernal.
\nSource: Du JunThe new incubator is set to announce its shareholders and incubation rules for the first batch of projects in May, along with its first investments.
\nJun said that the decision to halt ABCDE\u2019s fundraising efforts was not made due to financial constraints or lack of funds but because of a fundamental concern for the current development trajectory of the crypto industry.
\nRelated: Crypto, stocks enter \u2018new phase of trade war\u2019 as US-China tensions rise.
\n\u201cFrankly speaking, I am increasingly unable to agree with the current ecological atmosphere of the primary market,\u201d Jun said in an April 19 X post, adding:
\n\u201cMany projects are extremely short-sighted and only think about how to get listed on the exchange as soon as possible, and what is left behind is often a mess.\u201d
\n\u201cWhat is more worrying is that some primary funds not only have no reflection on this, but also hype up their \u2018listed projects\u2019 and short-term market value performance, but never mention the value creation of the projects themselves,\u201d he added.
\nCardano founder Charles Hoskinson has urged fourth-generation cryptocurrency projects to embrace more collaborative tokenomics to compete with major centralized tech companies entering the crypto industry.
\nCharles Hoskinson. Source: Cointelegraph\u201cThe problem right now, with the way we\u2019ve done things in the cryptocurrency space, is the tokenomics and the market structure are intrinsically adversarial. It\u2019s sum 0,\u201d Hoskinson said at Paris Blockchain Week on April 9. \u201cInstead of picking a fight, what you have to do is you have to find tokenomics and market structure that allows you to be in a cooperative equilibrium.\u201d
\n\u201cYou can\u2019t build a global ecosystem this way, and you can\u2019t win this way,\u201d he added. \u201cBecause here\u2019s the thing. The incumbents are much larger.\u201d
\nMagazine: Your AI \u2018digital twin\u2019 can take meetings and comfort your loved onesRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsWeb3 and blockchain-focused investment fund ABCDE is halting new investments, but the $400 million fund remains committed to supporting its existing projects. In an April 19 X post,… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127522"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127522"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127522\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127522"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}