ABCDE stops fundraising, crypto capital urgently needs a version update

原創| Odaily星球日報（ @Odaily中國 )

作者：溫瑟（ @溫瑟2010 )

Last weekend, ABCDE co-founder Du Jun officially 宣告 ABCDE Capital has stopped investing in new projects and suspending the second phase fund raising plan.

As soon as the news came out, the market was shaken. Some people believed that this incident indicated that the primary investment environment in the 加密貨幣 market was too bad, so that investment institutions could not stand alone; some people believed that this move might be a necessary choice to stop losses in time; and some people believed that the emergence of subsequent incubators meant that the focus of crypto capital shifted to direct coin issuance. Odaily Planet Daily will sort out the follow-up of this incident in this article and briefly discuss the possible direction of crypto capital.

ABCDE ends investment, Vernal incubator takes over

In the official tweet announcing that ABCDE Capital has stopped investing in new projects, Du Jun briefly shared the follow-up plans:

1. Launched a new incubator brand Vernal, announced shareholders, incubation rules and the first batch of projects in May;

2. Engage in secondary trading. Announce detailed purchase targets, purchase volume and reasons for purchase in May;

3. A brief summary of the investment profile of ABCDE Phase I Fund: nearly 40 million US dollars invested, supporting more than 30 projects, and leading more than 50% of the projects.

In addition, Du Jun emphasized that this move is entirely my personal desire to change my attitude and rethink how to participate in the development of the industry . The team is great, and there is no problem with fundraising. The two cornerstone LPs have sufficient funds and are willing to continue to support. This is not a question of funds or capabilities, but a choice of direction.

In other words, after experiencing the first-tier investment that was in turmoil but contrary to the short-term profit-seeking ecological atmosphere of the market, Du Juns interest turned to things that truly promote industrial progress and he hopes to accompany teams with a sense of mission and incubate companies that can truly bring long-term value to the industry and society. As a member of the industry, I believe we have the responsibility to push the ecology back to rationality and health, rather than being swept up by short-term games.

It has to be said that judging from this statement, this can be regarded as a failure for a long-term value investor with great ideals.

As everyone is investing in the Meme coin hype, the VC coin market participation has cooled, and countless projects have also entered a vicious cycle of financing-listing-dumping-disappearing, which is like drinking poison to quench thirst, leaving investors and retail investors in the wind and paying for their own losses. The market is increasingly inclined to short-term one-wave harvesting, rather than long-term technical route development, real user growth and slowly rising coin prices.

Of course, this is not a system mechanism that can be determined by a certain organization or user. In this cycle, mainstream coins including ETH and altcoins have all fallen to varying degrees, and the projects invested by ABCDE are no exception. According to statistics from crypto KOL @Anymose 96, among the projects that ABCDE has invested in, the highest price drop is as high as 95.5%.

The epitome of the bloodbath in Shanzhai

Based on this, capital institutions in the upstream ecological niche of the crypto ecosystem can no longer sit still and urgently need a version update to better survive the current market pain period.

A new option for crypto capital: taking into account both primary and secondary markets and embracing new narratives

Looking at the current market, crypto capital is gradually split into two major routes:

The first category is represented by ABCDE, which chooses to shift to secondary investment and trading while taking into account primary investment, seeking better market performance and capital returns;

The other group chooses to bet on new narratives such as AI and MCP, seeking possible future solutions through greater attention, capital volume, and application products. This is also one of the important reasons why the projects that have received investment recently are mainly concentrated in the fields of computing, data, and AI.

In this regard, the main changes in the market are reflected in the effective contraction of capital power and the change in narrative direction; what remains unchanged is the main logic of the crypto market – the constantly updated and iterated asset types and asset issuance methods.

In this regard, the crypto KOL Crypto Wei Tuo鈥檚 概括 is quite accurate:

The market continues to reward teams that can continuously create assets and markets with high volatility and high liquidity at the lowest cost. And the application narratives that cannot create volatility and liquidity are basically dead: as @YeruiZhang Ruishen mentioned, these Web3 logics of reconstructing Web2: Social, Gaming, ID, one by one. Because these projects are essentially the products of the platform-application logic of traditional large companies, and finally commercialized (harvested) through applications. This logic requires scale and decreasing marginal costs, not liquidity.

But what is the cryptocurrency world? Coins can be commercialized from day one, and liquidity is an inherent commercialization indicator. If you abandon this main indicator, it means that you do not belong to the cryptocurrency world, and your valuation model will fall to Web2 when compared with your competitors, and you will not be able to beat your Web2 competitors. In the cryptocurrency world, liquidity is the moat, and the mechanism is the main asset (not the application product).

This coincides with the view we mentioned in the article Web2 VS Web3 AI Projects: They are all for money, why is the gap so big? Web3 projects are working on assets, polishing and carving assets as a product, and ultimately feeding back to applications or leaving applications, so as to obtain liquidity aggregation and attention resource allocation on a longer time scale.

From this point of view, it is inevitable to some extent that crypto capital moves towards secondary investment – because in a capital market with increasingly concentrated liquidity, attention and volatility are ever-present, and gambling and probability go hand in hand.

Apart from tracks such as RWA and PayFi that tell stories to people outside the circle, the main line of the game will eventually return to the word transaction , and this is the main battlefield for crypto players.

This article is sourced from the internet: ABCDE stops fundraising, crypto capital urgently needs a version update