From Cointelegraph

April 19, 2025 05:59:00 AM:

Web3 and blockchain-focused investment fund ABCDE is halting new investments, but remains committed to supporting existing projects. Co-founder Du Jun announced the fund’s decision to no longer invest in new projects or raise capital for the second phase. The $400 million fund will focus on post-investment support and exit arrangements for current projects.

The announcement comes after ABCDE’s last investment in the Ethereum layer-2 solution, Soon (Solana Optimistic Network), which raised $22 million through an NFT sale. The Soon mainnet claims to outperform Solana in speed and efficiency, with average block times of 50 milliseconds compared to Solana’s 400 milliseconds. ABCDE has investments in Bitcoin scaling technology, Ethereum liquid staking derivatives, L2s, restaking, and smart contract platforms.

Du Jun stated that ABCDE has invested over $40 million in over 30 projects in the past three years, with a global leading level internal rate of return. The decision to suspend fundraising efforts comes as the co-founder launched a new incubator brand, Vernal, focused on strategic investment-led incubation. Jun expressed concern for the current development trajectory of the crypto industry and the short-sightedness of many projects.

Cardano founder Charles Hoskinson has urged fourth-generation cryptocurrency projects to embrace more collaborative tokenomics to compete with major centralized tech companies. He emphasized the need for cooperative equilibrium in tokenomics and market structure to build a global ecosystem and succeed against larger incumbents. Hoskinson spoke at Paris Blockchain Week on April 9.

Read more at Cointelegraph: $400M Web3 investment fund ABCDE halts new investments, fundraising