$400M Web3 investment fund ABCDE halts new investments, fundraising
ABCDE, a $400 million Web3 and blockchain investment fund, is halting new investments but will continue supporting existing projects. Co-founder Du Jun announced the decision on April 19, emphasizing a shift from financial to strategic investments focused on long-term value creation. ABCDE's last investment was in the Ethereum layer-2 solution Soon, which raised $22 million. The fund's portfolio includes 28% in Bitcoin scaling technology, 16% in Ethereum LSDFi infrastructure, and 12% in L2s and smart contract platforms. Despite market challenges, ABCDE has invested over $40 million in 30 projects with a leading internal rate of return. Jun's decision to stop fundraising is based on concerns about the crypto industry's development trajectory, criticizing short-sighted project goals. Additionally, Cardano founder Charles Hoskinson advocates for collaborative tokenomics among fourth-generation cryptocurrency projects to compete with centralized tech companies.
