After announcing that ABCDE Capital would stop new investments and fundraising plans, Huobi founder Du Jun turned his efforts towards the incubation brand Vermal. In addition to primary market investments and incubation, this brand will also make long-term secondary market investments based on value logic. For more detailed information, please see the text below.
After announcing that ABCDE Capital would stop new investments and fundraising plans, Huobi founder Du Jun turned his efforts towards the incubation brand Vernal. In addition to primary market investments and incubation, this brand will also make long-term secondary market investments based on value logic.
Recently, he publicly sought opinions from the community on Twitter, asking how to allocate funds in the secondary market with one hundred million dollars, besides Bitcoin. The article attracted many interesting opinions.
Shorting Bitcoin's market share, predicting mean reversion of market preferences.
Du Jun asked on Twitter: 'You are now the head of secondary market investments at Vermal, with 100 million USDT on hand. Besides Bitcoin, how would you allocate it? Why?'
@CryptoPainter X stated: 'Gradually build a position over 6 months, short BTC.D, and in conjunction with the macro liquidity turning to loosening before 2027, the small-cap cryptocurrency market will have a long-awaited rebound: 100 million US is neither too much nor too little. Investing in a few small-cap tokens individually would cause liquidity shocks and increase costs, so it’s better to target the liquidity deviation of the entire market (the market's short-term risk preference is overly biased towards BTC) and do a mean reversion; assuming your LP requires a 3-year exit, then this time window should be sufficient.'
He stated that this strategy is similar to going long on BTC.D (Bitcoin market share) starting in 2021, as the super-scale liquidity brought by the last bull market needs time to dissipate. Four years have passed, and the market has shifted from looking down on BTC to only daring to invest in BTC. He noted that whether in the short term (within this year) or long term (before 2028), there is a demand for this trend to return to normal.
Bet on a big hit or bet on SOL? Investment advice from Vida of Equation News.
The founder of Equation News, Vida, divided the funds into four parts and provided a layered investment structure: [30 million USD in spot SOL paired with 15 million USD shorting XRP plus 15 million USD shorting ETH positions, betting that SOL will continue to outperform both in the long term and hedge against black swan risks. Spot SOL can be staked on Binance to become BNSOL, earning an annualized interest of 6.6%.]
[5 million USD allocated to altcoins that were issued after 2023 and have real income, such as JUP, JTO, COW, ETHFI, etc. A position of 3 million is allocated to a basket of minimum market cap tokens that will be listed after 2023 and have Binance contracts along with Bvbit contracts, hoping that during a bull market, a trader will start their market. The last bull market was able to capture two hundred times secondary market coins, TRB and OM, by following the strategy of buying minimum market cap tokens.
Finally, he also offered an option to wait for opportunities: [62 million USD using a unified account on Binance, OKX, and Bvbit exchanges for fee arbitrage, waiting for a better swing opportunity. The best swing opportunity is during moments of despair similar to November 2022 when everyone is wiped out. If this opportunity is missed, it doesn’t matter if the timing fails because in a bull market, the short hedge positions will also increase as the coin price rises, and the interest received can become particularly high. This model will be better than placing it in various financial products.]
The above is the public gathering of opinions: How to allocate 100 million USDT besides Bitcoin! Du Jun turns to the incubation brand Veral! For more details on whether to bet on a big hit or on SOL, please follow Brother Liang's other related articles!
