Investment firm ABCDE has halted new investments for its $400 million fund, citing concerns about the direction of the cryptocurrency market. Co-founder Du Jun announced the decision, explaining that the company will now focus on supporting existing projects through post-investment support and exit arrangements. 28% of ABCDE’s investments are in Bitcoin scaling technology, while 16% is allocated to Ethereum liquid staking derivatives finance (LSDFi) infrastructure and another 12% to Layer-2 solutions. While the fund has invested over $40 million in more than 30 projects since its inception, Jun expressed concern over the short-sighted approach taken by many projects, focusing solely on exchange listing rather than long-term value creation. The announcement follows ABCDE’s launch of a new incubator brand, Vernal, which will focus on strategic investments and deep incubation efforts. This shift reflects a broader trend in the Web3 space as investors reevaluate their strategies amidst market volatility.