The fund launching between Huobi and BMAN comes after the recent collapse of the crypto market, even as BMAN expects the crypto to grow to 1 billion users.
Huobi co-founder Du Jun and Chinese Web3 investor “BMAN” Lee announced the formation of a new $400 million fund to invest in cryptocurrency ventures on Friday.
ABCDE Capital, according to BMAN in a Twitter thread, would strive to help between 10 and 20 CEOs per year. It will largely focus on blockchain infrastructure, open finance, and digital apps with broad adoption potential.
The debut coincides with one of the worst bear markets in crypto history, with Bitcoin and Ethereum trading well below 50% of their respective high.
However, it follows a similar effort by venture capitalist Andreessen Horowitz to benefit on the crash’s cheap values. The corporation launched a $4.5 billion fund last month.
BMAN, who co-founded Huobi Global with co-founder Du Jun, predicted that cryptocurrency would draw at least a billion users by the end of its next big cycle.
ABCDE, which stands for A Blockchain-Centric Development Ecosystem, will support its wards by using resources from past enterprises by BMAN and Jun. According to BMAN:
“We believe that in the next cycle, crypto will reach 1 billion users, and we will continue to build as always.”
Jun and BMAN are both established Web3 players with a number of other projects under their belts.
However, while BMAN remains bullish on the crypto sector, a recent drop in values has soured investor enthusiasm.
The collapse of a high-profile project like Terra has also raised scrutiny of cryptocurrency, with some regulators attempting to impose severe limits on the space.
Recent turbulence created by the impending insolvency of lender Celsius and hedge firm Three Arrows Capital is also harming sentiment. The collapse of the two would have far-reaching ramifications for the cryptocurrency economy.
With the Federal Reserve hiking interest rates and inflation at a 40-year high, crypto is in for a long winter.
