ABCDE Halts New Investments to Rethink Strategy – Coincu

Du Jun, co-founder of ABCDE and former Huobi (now HTX) executive, announced on Twitter the decision to stop new investments, prioritizing strategic reassessment over quick market entry.

The industry veteran’s decision marks a significant shift towards supporting projects that offer sustainable value, aiming to counter short-sighted strategies prevalent in the venture capital environment.

ABCDE’s Strategic Pause Amid Market Short-sightedness

Du Jun announced that ABCDE has stopped investing in new projects and raising funds. His decision stems not from financial difficulties but a desire to rethink participation in the industry’s evolution. He expressed dissatisfaction with the ecological atmosphere leaning towards short-term gains without considering long-term value.

Du Jun criticized the trend among some funds to only focus on getting listed on exchanges quickly, resulting in unsustainable projects. Despite having ample funds, ABCDE’s halt is strategic, aiming to push the ecosystem toward rationality and health, away from short-term games.

“Frankly speaking, I am increasingly unable to agree with the current ecological atmosphere of the primary market: many 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.” – Du Jun, Co-founder, ABCDE

The decision has stirred the community, with many acknowledging Jun’s candid remarks. No immediate price impact is reported for associated tokens, as ABCDE was fund-focused without specific token ties. Highlighting support for existing projects, Du Jun seeks to invest more in mission-driven ventures.

Analysis on Industry Shifts and Market Data

Did you know? Du Jun’s stance echoes concerns previously raised within crypto venture capital circles, highlighting a historical pushback against short-termism and “pump and dump” exit strategies, which often unsettle long-term industry health.

Bitcoin (BTC) is currently priced at $84,987.40 with a market cap of $1.69 trillion, reflecting a 0.59% gain over the last 24 hours, according to CoinMarketCap data. The 24-hour trading volume decreased by 16.17%. Over the past 90 days, Bitcoin has seen an 18.92% decline.

Analysis from the Coincu research team suggests that the strategic halt could prompt a broader reevaluation of investment philosophies in the crypto space, potentially fostering a shift towards projects with enduring value and technological innovation.