Famous venture capital firm ABCDE Capital announced it will stop new investments. Founder Du Jun: cannot endorse the current speculative atmosphere in the Primary Market.

Recently, the well-known venture capital firm ABCDE Capital announced that it would stop investing in new projects and will focus on post-investment management and exit arrangements for the projects it has already invested in, ensuring that commitments to invested projects and partners can be fulfilled. At the same time, it has also halted the fundraising plan for the second-phase fund. Du Jun himself will launch a new incubator brand Vernal and shift his work focus from primary market investments to strategic investments, with an emphasis on deep incubation, focusing on industrial synergy and creating long-term value.

ABCDE has invested 40 million dollars in three years.

Du Jun, co-founder of ABCDE Capital, stated on Twitter: "Recently, several friends have come to ask me about the situation with ABCDE. Taking this opportunity, I would like to provide a unified response and thank everyone for their concern. ABCDE has officially ceased new project investments and has suspended the fundraising plan for the second phase fund. The original team will continue to be responsible for post-investment support and exit arrangements for existing projects to ensure that commitments to entrepreneurs and LPs are seriously fulfilled."

The other founder of ABCDE Capital, BMAN, comes from Metropolitan Capital. Du Jun expressed gratitude for the contributions of these team members and stated that over the past three years, the ABCDE Phase I Fund has accumulated nearly $40 million in investments, supporting more than 30 projects, with over half being lead investors. In the current market environment, the IRR returns remain at a globally leading level. In addition to capital support, ABCDE is also continuously committed to the open-source ecosystem, accumulating hundreds of Stars on GitHub and making substantial contributions to the community.

Du Jun stated that he cannot endorse the current short-termism in the primary market.

Subsequently, Du Jun stated that ABCDE has halted new project investments and the second phase of fundraising, which is entirely a personal decision to rethink how to participate in the development of the industry. He added: "The team is great, and there are no issues with fundraising; the two cornerstone LPs are well-funded and willing to continue their support. This is not a matter of funds or capability, but rather a choice of direction."

He then earnestly expressed: "To be honest, I increasingly cannot agree with the current ecological atmosphere of the Primary Market: many projects are extremely short-sighted, only thinking about how to get listed on exchanges as quickly as possible, leaving behind a mess. What is even more concerning is that some primary funds not only have no reflection on this, but instead boast about the projects they have invested in and their short-term market performance, while never mentioning the value creation of the projects themselves, let alone whether these projects survive healthily after being listed."

He candidly stated that the current state of the industry is no longer a game he wishes to participate in, nor is it the original intention of founding ABCDE.

He said, "For me, this kind of work is a waste of time rather than creating value. I neither lack nor want to earn this money. Moving forward, I hope to invest my time and resources into things that truly drive industry progress. Spending time, putting in effort, making strategies, supporting mission-driven teams, and incubating enterprises that can genuinely bring long-term value to the industry and society. As a member of the industry, I believe we have the responsibility to promote a return to rationality and health in the ecosystem, rather than being held hostage by short-term games."

Du Jun shifts focus to Depth incubation.

Opening up ABCDE's investment positions, it includes Merlin Chain, Babylon, Solv, Bitlayer, Nubit, Corn, B² Network, Unisat, Lorenzo, which almost buys up the entire Bitcoin ecosystem, and also includes the game token Matr1x. Additionally, it includes projects supported by ABCDE such as PolyHedra, Particle Network, MegaETH, SOON, Solayer, CAP, etc.

Next, Du Jun will focus on the incubator brand Vernal, which has three businesses:

Incubator

Primary Market Investment

. Buy coins in the Secondary Market, based on value logic, and hold long-term.

In May, the first batch of incubation projects will be publicly announced, along with the incubation rules and shareholder composition.

This article reports that the well-known venture capital firm ABCDE Capital has announced a halt to new investments. Founder Du Jun stated that he cannot endorse the current speculative atmosphere in the Primary Market, first reported by Chain News ABMedia.