ABCDE, a prominent $400 million Web3 venture capital fund, has announced a halt to new investments and paused fundraising for its second fund, according to co-founder Du Jun. The firm will now focus on supporting existing projects and managing exits to fulfill commitments to entrepreneurs and limited partners. In line with this strategic shift, ABCDE plans to launch a new incubator brand named Vernal in May, aimed at deeply incubating projects that can genuinely advance the blockchain industry. The decision reflects broader challenges facing the crypto venture capital sector, including short-termism, lack of innovation, overvaluation, and difficulties in fundraising amid poor project performance and market uncertainty. Industry observers note that many crypto VC funds are struggling with low returns on investment, with some experiencing losses of up to 50% or more. The current environment has led to a strategic pivot away from traditional venture investments toward secondary market activities and incubation models. ABCDE's move underscores the evolving landscape of crypto investment as funds grapple with the sector's limited value propositions and regulatory challenges.