One-level investment is struggling, and the secondary market welcomes professional players.
Last weekend, ABCDE co-founder Du Jun officially announced that "ABCDE Capital has stopped investing in new projects and suspended the second-phase fund-raising plan".
The news shocked the market. Some believe this event signifies how harsh the crypto investment environment is, others as necessary stop-losses. Odaily will sort out the follow-up of this event and briefly explore the potential direction of crypto capital.
ABCDE Stops Investing, Vernal Incubator Takes Over
In the official announcement about ABCDE Capital stopping new project investments, shared brief plans for the future:the
. aincubator brand Vernal, announcing shareholders, incubation, batch of in May;
2. into secondary trading. Announcing detailed purchase targets, volume, and reasons in May;
3. Briefly summarize ab-phase investment overview: Invested nearly $40 million, supported over 30 projects, led over 50% of projects.
Additionally, Du that this move is "completely my personal desire to change posture and rethink how to participate in industry development. The team is great, fundrafundraising has no problems, and two cornerstone LPs have sufficient funds and are to willing to continue supporting This isn't about funds or ability, but direction choice."
In other words, after experiencing first-level investment that was fiery yet contrary to the market's short-term profit-seeking ecological atmosphere, Du Jun's interest has shifted to to "truly promoting industrial progress", hoping to "accompany mission-driven teams and incubate enterprises that can truly bring long-term value to the industry and society. As an industry member, I believe we have responsibility to promote ecological rationality and health, rather than being swept up in short-short-term speculation."
It must be said that from this statement, this can be considered a defeat of a long-term value investor with idealistic sentiments.
Under the current MEME coin speculation frenzy, VC market participation is cooling, and numerous projects have fallen into a "-listing-ping disappearing" cycle, leaving investors and market retail investors bewildered and paying for their losses. The market increasingly tends towards short-term "one-wave" mutual harvesting, rather than long-term technological route development, real user growth,, and slowly rising coin prices.
Of course, this is a systemic mechanism that cannot be decided by a single institution or user. in this cycle, mainstream coins including ETH and Altcoins have shown varying degrees of decline, and ABCDE's invested projects are no exception.
According to crypto KOL @Anymose statistics'S have coins, the highest price drop 95.5% decline.reflects the bloodshed of Altcoins.
Based on this, capital institutions in the upper crypto ecosystem can no longer sit still andently urgently needing a version to current market pain period.
crypto capital is gradually dividing into two routes:
One category, represented by ABCDE, chooses to transform towards secondary investment and trading on trading considering first-level, seeking better market performance and capital returns;
The category chooses to bet on new narratives like AI, MCP, seeking potential future through broader attention, capital volume, and application products. This an important reason why recently invested projects mainly concentrate in computing, data, AI and other fields.
In this regard, market's main changes reflect in effective capital force contraction and narrative direction; unchanged is crypto market's main logic - continuously updating asset types and assetst issuance methods.this aspect, crypto crypto KOL crypto Veda's summary is quite market apt:continuously rewards teams that can create lowest-cost assets with high volatand liqu",idity while applicationswithout creating volatility and liquidity basically die: like @YeruiZhang mentioned "Web3" logic reconstructing Web Web Social Gaming,, ID, one by one. Because these projects essentially are traditional big factory factory "platform-application" logic, ultimately commercializing (esting This logic needs scale and decredecreasing marginal cost,, not liquidity.
not liquidity.
However, what is crypto? From the first first day, its it could be "commercialized", and liquidity is an inherent ""commercialization" indicator. measurement. Abandoning this main indicator means you do not belong to crypto, and your valuation model and competitive product comparison will fall fall back to Web2, and then you cannot beat Web2 2in crypto, theat, mechanism is the asset (rather than "application").
This aligns with the viewpoint we previously mentioned in 《Web2 3 3 AI Projects: All for Money, How Can the Gap Be So Big?》, Web3 projects are creating assets, polishing assets assets as a product, ultimately nourishing applications or departing from applications, in order to gain longer-term liquidity aggregation and attention resource allocation.
main game line will ultimately return to the two words "trading", and this is the main battlefield for crypto players.
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在加密行业，"山寨币"是一个常见的术语，指的是除比特币和以太坊之外的其他加密货币。这些替代币（Altcoin）通常具具有创新的技术或商业模式，但如Amp、TRON、Dai、NYM、NKN等。
