Asia’s Biggest Crypto Investors Walk Back $1B Ethereum Initiative Amid Market Caution

Organizers refunded all committed capital rather than proceed during a period of unclear market momentum. The development was first reported by the South China Morning Post.

People familiar with the effort describe the pause as a tactical decision rather than a collapse. Funding was already secured and investor appetite was not a barrier. However, the group determined that launching a billion-dollar strategy during a fragile market cycle could compromise results and confidence. Returning funds was framed as a precaution rather than a setback.

Heavyweights Were Fully Aligned Before the Pause

The initiative brought together prominent figures from the Asian crypto ecosystem, including Huobi founder Li Lin, HashKey Group CEO Xiao Feng, Meitu co-founder Mike Cai and Fenbushi Capital founder Bo Shen. While such names seldom assemble around the same investment thesis without strong conviction, the organizers agreed that preserving reputational strength and investor sentiment outweighed the benefits of deploying capital immediately.

The shelved plan was notable for its structure. Rather than creating a traditional venture capital fund, the group intended to acquire a Nasdaq-listed company and operate an Ethereum-treasury business under its umbrella. This approach would have granted faster regulatory clarity and a public-market framework. With the suspension of the project, the associated acquisition strategy has also been frozen.

Signals About the Market, Not About Ethereum’s Prospects

Analysts commenting on the decision say it reinforces the idea that large-scale crypto fundraising has not fully recovered since the October downturn. Prices have stabilized and development activity is strong, but the willingness to commit billion-dollar pools in the current cycle remains limited. Big launches are being delayed until confidence and liquidity are more firmly established.

Despite the setback, industry observers note that Ethereum continues to anchor institutional blockchain themes such as tokenization, staking and restaking infrastructure. The cancellation reflects caution around timing rather than weakening conviction in Ethereum’s long-term relevance. Organizers indicated they may revisit the idea when market conditions are more favorable.

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