Recent changes in the strategy of ABCDE, co-founded by Du Jun, raise questions about the future of new investments in blockchain technologies while continuing to support existing projects.
Changes in ABCDE's Strategy
Du Jun, co-founder of ABCDE and Huobi, announced a new approach that involves halting new investments in Web3. This decision may significantly affect market dynamics, particularly impacting emerging blockchain projects related to Ethereum L2 protocols and Bitcoin scaling solutions. However, existing investments will continue to receive support.
Community Reaction to Du Jun's Statement
The community reacted cautiously, with developers and investors beginning to discuss the potential implications of the strategic changes. Du Jun also claimed that no other blockchain technology can compete with the trifecta of decentralization, uptime, and security, which sparked varied opinions among industry professionals.
Overall Ethereum Dynamics Amid Changes
Currently, Ethereum (ETH) is trading at $3,575.29 with a market capitalization of $4.32 billion. Over the last 90 days, the price of ETH has increased by 88.53%, highlighting its recent market strength. However, shifts by major funds like ABCDE may lead to temporary slowdowns in funding for new projects and decrease the growth rates of related initiatives.
ABCDE's decision to revise its strategy could impact the entire blockchain ecosystem, creating uncertainty for new projects while existing players continue to receive support. This emphasizes the importance of closely monitoring market changes.
