This $400 Mln Fund Plans To Invest In Crypto Despite A Coming Winter

Huobi co-founder Du Jun and Chinese Web3 investor “BMAN” Lee said on Friday launched a new $400 million fund to invest in crypto projects.

The fund, called ABCDE Capital, will seek to support between 10 to 20 CEOs annually, BMAN said in a Twitter thread. It will focus primarily on blockchain infrastructure, open finance, and digital apps that have potential for mass adoption.

The launch comes amid one of the worst downturns in crypto’s history, with Bitcoin and Ethereum trading well below 50% from their respective peaks.

But it also follows a similar move by venture capitalist Andreessen Horowitz to capitalize on low valuations due to the crash. The firm had last month rolled out a $4.5 billion fund.

BMAN sees crypto attracting 1 billion users

BMAN, who incubated Huobi Global with co-founder Du Jun, said that they expect crypto to attract at least a billion users by its next major cycle.

ABCDE- which stands for A Blockchain-Centric Development Ecosystem, will leverage resources from previous ventures by BMAN and Jun to support its wards.

We believe that in the next cycle, crypto will reach 1 billion users, and we will continue to build as always.

-BMAN

Both Jun and BMAN are already established players in Web3, with several other projects also under their belt.

Launch comes as valuations collapse

But while BMAN holds an optimistic view on the crypto market, a recent slump in valuations has soured investor sentiment.

The implosion of a high-profile project like Terra has also seen increased scrutiny towards crypto, with some regulators looking to slap strict guidelines on the space.

Recent ructions caused by the potential insolvency of lender Celsius and hedge fund Three Arrows Capital is also further damaging sentiment. A collapse of the two would have far-reaching consequences for the crypto market.

With the Federal Reserve raising interest rates, and inflation at a 40-year high, crypto is in for a prolonged winter.