As Many Cryptos ZhenFund Invested In Fell 98%, Angel Investor Xu Xiaoping Has Reportedly Exited Cryptocurrency Sector
In the protracted crypto bear market, Bob Xu Xiaoping, one of China’s most celebrated angel investors and a blockchain enthusiast, has reportedly exited the cryptocurrency and blockchain space as he removed all blockchain-related content from his official Weibo account.
Xu started ZhenFund, a Beijing-based seed fund, in 2011 with Sequoia Capital China, and the fund’s profile includes a series of successful projects. ZhenFund jumped on the cryptocurrency bandwagon as early as 2013 by joining the seven-digit RMB angel round of the leading crypto exchange Huobi.
During the 2017 bull-run, ZhenFund registered an return on cryptocurrency investment of over 700 percent. Especially, the digital token, GXShares, returned over 3816.25 percent, and other cryptocurrency projects including Services and IOST also provided the fund with lucrative returns last year.
It’s worth mentioning Xu called fellow investors to fully embrace blockchain technology in an internal WeChat group earlier this year, causing a big stir in China then. “The blockchain revolution has already arrived. Riding the trend, you’ll prosper; off the trend, you are doomed.” Xu said.
After the WeChat group message went viral, Xu soon took to Weibo, a twitter-like social media platform in China, saying that “I strongly encourage my fellows to learn and embrace blockchain technology, which is an understanding based on my long-term observation and deep thinking. And I feel obliged to tell this to our fellow startups”. But the post has been deleted.
As bitcoin has slumped more than 80% since 2017 peak and the crypto bear market continues, almost every blockchain-focused fund is taking a beating. According to local media, many digital tokens which Xu and his fund have invested in have seen a decline of 90 percent in value this year , including IOST、DATA、EDU、YEE、QUNQUN. Some of these tokens’ prices were down as much as 98%, on their way to zero.
In the latest interview, Xu was reticent about blockchain and cryptocurrency, but said he was extremely optimistic about the prospect of Chinese entrepreneurs.