The fund’s co-founder, Du Jun, said in an April 19 X post that while ABCDE will no longer back new ventures or pursue a second round of capital, it remains committed to its current portfolio through strategic exits and continued guidance.

ABCDE Shifts to Deep Incubation

“My personal focus is shifting toward strategic investments and deep incubation, targeting long-term value creation and industrial synergy,” Jun stated.

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The move follows ABCDE’s most recent investment in Soon, an Ethereum L2 solution claiming faster block times than Solana.

Portfolio Strategy and Market Outlook

According to Cryptorank, ABCDE allocates:

• 28% to Bitcoin scaling
• 16% to Ethereum LSDFi
• 12% to L2s and restaking

The firm has deployed over $40M into 30+ projects, maintaining a top-tier internal rate of return (IRR) despite the bear market.

New Incubator Vernal to Launch in May

The decision comes on the heels of the Vernal launch — a new incubator brand by Du Jun. It will announce its first cohort and incubation framework next month.

Jun clarified the fund’s pause is not due to lack of money but rather concerns over the short-termism in crypto:

“Too many projects just want to get listed fast. What’s left is chaos,” he said.

“Some funds hype short-term market caps instead of true value creation,” he added.

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