In a brand new Twitter post dated Dec. 12, Du Jun, co-founder of cryptocurrency change Huobi International, shared new perception on his expertise of working ABCDE Capital, a $400 million Internet 3.0 enterprise capital (VC) fund, in June this 12 months. In keeping with Jun, the concept for ABCDE Capital got here in March, and by April, it was already registered in Singapore. Nevertheless, amidst the $40 billion Terra Luna implosion in Could, Jun mentioned that “outdated cash has all however fled” after the incident.
We selected to start out @ABCDECapital on the most troublesome time of the market. Hope to carry a glimmer of sunshine to builders and convey extra equity, innovation and energy to crypto business. https://t.co/GmxFFsG7qL
— Du Jun (@DujunX) June 17, 2022
Undeterred, Jun continued that in August, the VC fund was absolutely operational, with “a couple of companions pooling tens of thousands and thousands of {dollars} to speculate.” Whereas an preliminary report early November revealed “superb” outcomes, Jun mentioned that the following collapse of FTX was “far past expectations” for the business:
“Layoffs, wage cuts, and contraction turned primary themes for crypto firms. One thought the feud between FTX and Binance would encourage wholesome business growth, however it turned out FTX was so weak that it simply straight-up surrendered, bringing a wave of disaster. Immediately Binance has over 75% market share, and whether or not he likes it or not, CZ’s [Binance CEO Changpeng Zhao] angle in the direction of regulation represents that of your complete business, and it is an enormous problem for CZ.”
With regard to decentralized finance, or DeFi, Jun attributed final summer season’s growth to quantitative easing (QE) measures of the U.S. Federal Reserve. Tying it to regulation, Jun mentioned that DeFi development happened largely resulting from firms corresponding to Coinbase, Circle, Grayscale, and Paxos “actively embraced regulation” and allowed giant institutional traders to enter the area in opposition to the backdrop of QE.
“FTX’s implosion made conventional outdated cash and authorities businesses afraid, and even disgusted, by the chaotic and orderless realm of crypto. For a very long time thereafter, governments wouldn’t help relaxed insurance policies that help growth and innovation in crypto, nor would sovereign wealth funds make investments out there.”
Jun additionally revealed that since ABCDE Capital started investing in August, the agency has since amassed seven firms in its portfolio within the safety, knowledge, social, zero data, and nonfungible tokens sectors. “ABCDE solely invests in 15-20 companies per 12 months; agency just isn’t afraid of the bear market, referrals are welcome, let’s proceed!” wrote the co-founder.
