This year, in the midst of the bear market, Jun formed the fund, and he is continuing to invest in Web 3.0 companies.
The co-founder of cryptocurrency exchange Huobi Global, Du Jun, published a new post on Twitter on December 12 in which he revealed new insights on his experience of leading ABCDE Capital, a $400 million Web 3.0 venture capital (VC) fund in June of this year. The tweet was dated December 12. According to Jun, the concept for ABCDE Capital first came to him in March, and the company was officially incorporated in Singapore in April. Despite this, Jun stated that “old money has all but departed” after the occurrence, which occurred in the midst of the $40 billion Terra Luna implosion in May.
Unfazed, Jun went on to say that the venture capital fund was fully functioning by the month of August, with “a few partners pooling tens of millions of dollars to invest.” In spite of the fact that an earlier report from the beginning of November indicated “extremely good” results, Jun stated that the subsequent collapse of FTX was “way above expectations” for the industry:
“The elimination of jobs, reductions in salaries, and overall business shrinkage became commonplace among cryptocurrency enterprises. The conflict between FTX and Binance was first supposed to promote healthy industry development; nevertheless, it turned out that FTX was so weak that it just straight-up surrendered, which brought about a wave of tragedy. Today, Binance has a market share of over 75%, and regardless of whether or not he likes it, CZ’s (Binance CEO Changpeng Zhao) attitude toward regulation represents that of the whole industry. This presents a significant challenge for CZ.”
Regarding decentralised finance, often known as DeFi, Jun ascribed the surge that occurred during the summer of 2016 to the quantitative easing (QE) policies implemented by the United States Federal Reserve. Jun tied it to regulation and claimed that the emergence of decentralised finance was largely owing to businesses like Coinbase, Circle, Grayscale, and Paxos “actively embracing regulation,” which allowed huge institutional investors to enter the field against the backdrop of quantitative easing (QE).
“The implosion of FTX caused traditional old money and government organisations to become fearful of, or even repulsed by, the chaotic and orderless arena of cryptocurrency. After that, for a considerable amount of time, governments and sovereign wealth funds did not invest in the cryptocurrency sector, nor did they promote more relaxed rules regarding crypto that encourage development and innovation.”
Jun also disclosed that since ABCDE Capital began investing in August, the firm has amassed seven companies in its portfolio in the security, data, social, zero knowledge, and nonfungible tokens sectors. This information was provided in response to the question, “When did ABCDE Capital begin investing?” “ABCDE only invests in fifteen to twenty-five companies each year; a good company is not afraid of the bull market, referrals are welcome, let’s continue!” wrote the co-founder of the company.