ABCDE suddenly closed, A16Z stands firm

Why is A16Z powerful and why is ABCDE closed

As long as the geographical distribution of a species is wide enough, geographical variation will occur.

ABCDE was heartbroken by the BTC L2 track and invested 40 million US dollars in total in three years. In the face of no higher returns, it directly entered the post-investment stage (refer to previous period: the final stage of encrypted VC, what did YZi invest in).

As early as 2023, some Chinese VCs have begun to move to level 2, or they do not raise new funds, and are focused on supporting projects that have been invested in Binance, Gate, and Matcha. If you can withdraw, you will lose less. The transformation of Web3Port is correct, but unfortunately, you are a little greedy.

Never make the last copper coins, otherwise it will become the target of public criticism as the focus of emotions. However, Li Chaoren, who said this, also became a doomsday cucumber, and the temptation of money is not transferred by personal will.

A16Z doesn't think so. Judging from the absolute rate of return, Silicon Valley VCs that like to stretch the line may not be as good as Chinese VCs, but a16z AI raised $20 billion, and even the starting investment of the entrepreneurship acceleration camp (CSX) was $500,000, while the overall Crypto fund scale exceeded $7.6 billion.

This is no longer a mutation, but has been integrated into part of the existing ecology and even the future ecology.

Getting an investment is different from getting a16z investment.

If we expand our perspective, the crypto industry will begin to show the following rules: the West is responsible for concept issuance, the East is responsible for project development, the West is responsible for capital concentration, and the East is responsible for liquidity.

Chinese firms such as Binance still have greater liquidity, and Bitget is also known for its own market making business. But why are we gradually "pride in internationalization" and take the Chinese-speaking market second at all levels from exchanges to VCs?

 Image description: a16z American Dynamism Image source: a16z

At the exchange, stablecoins, and even compliance levels, we are all showing a backward basic appearance, not spreading emotions, but sharing facts. We are at a turning point in history.

Web2 already exists, and is strong in Web3.

After DeepSeek R1's "export conversion to import", the traditional VC, which has gradually become quiet since 2018, began to recover, but it must be admitted that the concept of US dollar + BVI + VC + Chinese market has gradually disappeared.

More and more Internet strategic investors are independent and abolished, local government industry guidance funds are more in love with "hard technology" and localization, and the central level plans to plan future industries, and financial state-owned enterprises and central enterprises pay more attention to policy trends and preservation and appreciation.

The reason why ABCDE, or the entire Chinese Crypto VC has faded is self-evident:

1. a16z can love the United States and the US dollar. Companies investing in Silicon Valley are naturally global, and the new global information capitalist platform is embedded in genes;

2. Chinese VCs cannot directly embrace the Chinese market, but can only rely on the Western halo to compete with their peers in the role of selling the liquidity of the Chinese market.

After A&T was disbanded, Internet giants basically did not look at Web3. Local governments and state-owned enterprises basically only talked about chains, but were afraid of coins, let alone participating in investment and market making. The test of a few state-owned and private financial groups in Hong Kong and Singapore is more like a strategic defensive attitude.

The US dollar is a product, and the US market is the former station of the global market. The a16z fundraising threshold is low and the scale is huge, but compared with the global market, there is still a huge possibility of making profits.

a16z can fail 1000 times until the next meta or Google appears.

Mobilization or speculation: Where is the Chinese currency circle going?

Neanderthals had beautiful stone tools, but they were stupid craftsmen.

In Western history, finance has always been a means of mobilization. Behind the Dutch Tulips and the British South China Sea Securities is the incomparable success of the Netherlands and the British East India Company. Spain and Portugal, which insist on the royal specialization, lost the whole world after snatching the American silver.

The failure of the two teeth is not the failure to transport silver to the industrial field, but the lack of awareness of financial and social participation. The innovation of a certain king is not enough to change the fate of the country.

Generation version of God

This is true for Chinese VCs. The high requirements and fast returns of LP are not a problem. The lack of ability to meet is the problem of VCs. a16z does not solve this problem, but YZi (Prev Binance Labs)'s investment preference is trading products, ranging from DEX to other CEXs, including FTX.

Home-run Maelstrom similar to Arthur Hayes doesn’t care much about market trends, but instead goes out of its aesthetic preferences, disenchant everything, and respects innovators. As it turns out, Ethena Like / Delta Like products have become the mainstream choice in the market.

Innovation will not happen in the high ground of Twitter traffic, but is more often in the personal mind. After the hardships, whether it is money or Big Name, or the support of key figures and nodes, is not worthy of being told by outsiders.

Assassins Resist the Technological Lord

The future does not necessarily make progress. The bigger trend of various platforms is to become the "lords" of the information age, blocking the path of latecomers in the name of technology and progress. For example, the all-female space tour group with Blue Origin, Vitalik mentioned the Risc-V concept after he switched to PoS. Neither the name of DAO nor the foundation can prevent the de facto individuals from exerting influence.

We need new people and new paths of innovation.

Which one will come first, the technical singularity or surprise attack, may be exquisite enough, but the impact on Binance and USDT should not be big enough.

Speculation is not long-termism

In fact, our role is token dumping place, and we have the greatest liquidity in vain, but we have no power to resist Western VCs, policies and exchanges because money will be united enough, but people are born with selfishness.

If some people are known as long-termists, remember that SBF prefers vegetarianism and spreading effective altruism, of course, Movement Labs has proven that being a Trump friend is more useful than that.

Speculation is speculation, long-termism is long-termism, and speculators will never agree with long-termism.

Bitcoin has only been in the past 17 years. It is clear at a glance who is true and who is false.

Long-termism is similar to effective altruism, and first of all, we need to solve how we survive until the day the results are confirmed.

Conclusion

Income is a series of events, and only when the waves surging can the true nature of a hero be revealed.

Cultural traditions, like TVL, will also become a debt to the project party. Creditors are just waiting for the exercise of their rights, and projects that rely on junk terms to attract debt are tantamount to futures dead people.

The imbalance between the East and the West is like the distance from the Westernization Movement to Bitcoin. It seems far away and inconsistent, but in fact, the cause and effect of the fate has been determined in the open eyes of the world.

The only question is, can our generation of crypto practitioners build public goods for the whole world from the local liquidity market, and make profits from it.