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In a brand new Twitter post dated Dec. 12, Du Jun, co-founder of cryptocurrency alternate Huobi World, shared new perception on his expertise of operating ABCDE Capital, a $400 million Net 3.0 enterprise capital (VC) fund, in June this yr. In line 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 “previous cash has all however fled” after the incident.
We selected to start out @ABCDECapital on the most tough time of the market. Hope to carry a glimmer of sunshine to builders and convey extra equity, innovation and power to crypto trade. https://t.co/GmxFFsG7qL
— Du Jun (@DujunX) June 17, 2022
Undeterred, Jun continued that in August, the VC fund was absolutely operational, with “just a few companions pooling tens of thousands and thousands of {dollars} to speculate.” Whereas an preliminary report early November revealed “superb” outcomes, Jun mentioned that the next collapse of FTX was “far past expectations” for the trade:
“Layoffs, wage cuts, and contraction turned most important themes for crypto firms. One thought the feud between FTX and Binance would encourage wholesome trade improvement, but it surely turned out FTX was so weak that it simply straight-up surrendered, bringing a wave of disaster. As we speak Binance has over 75% market share, and whether or not he likes it or not, CZ’s [Binance CEO Changpeng Zhao] perspective in direction of regulation represents that of all the trade, and it is an enormous problem for CZ.”
With regard to decentralized finance, or DeFi, Jun attributed final summer time’s growth to quantitative easing (QE) measures of the U.S. Federal Reserve. Tying it to regulation, Jun mentioned that DeFi development occurred largely resulting from firms similar to Coinbase, Circle, Grayscale, and Paxos “actively embraced regulation” and allowed massive institutional buyers to enter the area towards the backdrop of QE.
“FTX’s implosion made conventional previous 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 improvement and innovation in crypto, nor would sovereign wealth funds make investments available in the market.”
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 information, and nonfungible tokens sectors. “ABCDE solely invests in 15-20 corporations per yr; an excellent agency isn’t afraid of the bear market, referrals are welcome, let’s proceed!” wrote the co-founder.
