'Old money has all but fled,' Huobi co-founder discusses challenges of running $400M VC fund

In a caller Twitter post dated Dec. 12, Du Jun, co-founder of cryptocurrency speech Huobi Global, shared caller penetration connected his acquisition of moving ABCDE Capital, a $400 cardinal Web 3.0 task superior (VC) fund, successful June this year. According to Jun, the thought for ABCDE Capital came successful March, and by April, it was already registered successful Singapore. However, amidst the $40 cardinal Terra Luna implosion successful May, Jun said that "old wealth has each but fled" aft the incident.

We chose to commencement @ABCDECapital astatine the astir hard clip of the market. Hope to bring a glimmer of airy to builders and bring much fairness, innovation and spot to crypto industry. https://t.co/GmxFFsG7qL

— Du Jun (@DujunX) June 17, 2022

Undeterred, Jun continued that successful August, the VC money was afloat operational, with "a fewer partners pooling tens of millions of dollars to invest." While an archetypal study aboriginal November revealed "very good" results, Jun said that the consequent illness of FTX was "far beyond expectations" for the industry:

"Layoffs, wage cuts, and contraction became main themes for crypto companies. One thought the feud betwixt FTX and Binance would promote steadfast manufacture development, but it turned retired FTX was truthful anemic that it conscionable straight-up surrendered, bringing a question of catastrophe. Today Binance has implicit 75% marketplace share, and whether helium likes it oregon not, CZ's [Binance CEO Changpeng Zhao] cognition towards regularisation represents that of the full industry, and it's a immense situation for CZ."

With respect to decentralized finance, oregon DeFi, Jun attributed past summer's roar to quantitative easing (QE) measures of the U.S. Federal Reserve. Tying it to regulation, Jun said that DeFi maturation took spot mostly owed to companies specified arsenic Coinbase, Circle, Grayscale, and Paxos "actively embraced regulation" and allowed ample organization investors to participate the abstraction against the backdrop of QE.

"FTX's implosion made accepted aged wealth and authorities agencies afraid, oregon adjacent disgusted, by the chaotic and orderless realm of crypto. For a agelong clip thereafter, governments would not enactment relaxed policies that enactment improvement and innovation successful crypto, nor would sovereign wealthiness funds put successful the market."

Jun besides revealed that since ABCDE Capital began investing successful August, the steadfast has since amassed 7 companies successful its portfolio successful the security, data, social, zero knowledge, and nonfungible tokens sectors. "ABCDE lone invests successful 15-20 firms per year; a bully steadfast is not acrophobic of the carnivore market, referrals are welcome, let's continue!" wrote the co-founder.