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ABCDE fund halts new investments and fundraising after $400M raise

ABCDE fund halts new investments and fundraising after $400M raise

GrafaGrafa2025/04/21 06:20
By:Mahathir Bayena

ABCDE, a $400 million Web3 and blockchain-focused investment fund co-founded by Du Jun, founder of Huobi exchange, has announced it will stop making new investments and pause fundraising efforts for its second fund.

In an April 19 post on X, Du Jun stated that while ABCDE will no longer invest in new projects or raise additional capital, the fund remains committed to supporting its existing portfolio companies and managing exit strategies.

Du Jun explained his personal focus will shift from primary market financial investments toward strategic, incubation-driven initiatives that emphasise industrial synergy and long-term value creation.

This decision follows ABCDE’s last investment in January 2025, when it backed Soon, an Ethereum (CRYPTO:ETH) layer-2 solution, which raised $22 million through a non-fungible token sale.

According to Cryptorank data, ABCDE’s portfolio includes 28% in Bitcoin (CRYPTO:BTC) scaling technologies, 16% in Ethereum liquid staking derivatives finance infrastructure, and 12% in layer-2 solutions, restaking, and smart contract platforms.

Over the past three years, ABCDE has invested more than $40 million across 30 projects, maintaining an internal rate of return considered strong despite market volatility.

The fund’s suspension of new investments coincides with the launch of a new incubator brand, Vernal, which plans to announce shareholders, incubation rules, and initial investments in May.

Du Jun emphasised that the halt is not due to financial constraints but reflects concerns about the current primary market environment, where many projects prioritise quick exchange listings over sustainable value creation.

He criticised some funds for promoting short-term market performance without addressing the underlying value of projects.

Industry voices like Cardano (CRYPTO:ADA) founder Charles Hoskinson have called for more cooperative tokenomics and ecosystem collaboration to compete with large centralised tech firms entering the crypto space.

ABCDE’s strategic pivot may influence the broader Web3 investment landscape, encouraging a focus on sustainability and long-term development amid regulatory and market uncertainties.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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