Web3 and blockchain-focused investment fund ABCDE is pausing new investments, but the $400 million fund remains dedicated to supporting its current projects. In an announcement on April 19, ABCDE co-founder and Huobi exchange founder Du Jun stated that the fund will no longer invest in new projects or raise capital for the second phase. However, the fund will maintain its support for existing projects to uphold its commitment to entrepreneurs and liquidity providers. Jun mentioned a shift in focus towards strategic investment-led initiatives for long-term value creation. The decision comes after ABCDE’s recent investment in the Ethereum layer-2 solution, Soon, which raised $22 million through an NFT sale. The Soon mainnet claims to outperform Solana in speed and efficiency. ABCDE has a diverse investment portfolio, with significant allocations in Bitcoin scaling technology, Ethereum liquid staking derivatives, L2s, restaking, and smart contract platforms. The fund has invested over $40 million in 30 projects with a strong internal rate of return. The suspension of fundraising coincided with the launch of a new incubator brand, Vernal, by the fund’s co-founder. The incubator is set to announce its first batch of projects and investments in May. Jun clarified that the decision to halt fundraising was not due to financial constraints but a concern for the current development trajectory in the crypto industry. This move reflects a growing sentiment towards fostering long-term value creation over short-term gains. Cardano founder Charles Hoskinson has advocated for collaborative tokenomics in the cryptocurrency space to compete with major tech companies. Hoskinson emphasized the need for a cooperative equilibrium in market structures for sustainable ecosystem growth. The industry is evolving towards a more collaborative approach to overcome adversarial dynamics.