Open Letter from Investment Companies to the Crypto Assets Industry

As the Crypto Assets market experiences significant turbulence, we want to convey some thoughts to our portfolio companies, investors, and colleagues across the industry. Despite the challenges, we remain firmly convinced that the future will be better.

Recently, the significant devaluation of a certain stablecoin triggered a chain reaction, leading to drastic fluctuations in the Crypto Assets market. This event may mark the end of the "too big to fail" era, reminding us that anything can happen in this industry.

In the face of the global Crypto Assets market crash, it is understandable that people feel panic and lose confidence. However, we encourage everyone to remain objective and calm, and to reassess the current situation with us.

First, market sentiment may have been overstated. If the secondary market does not decline further, the impact of this event may not exceed the major drop in March 2020. To some extent, this adjustment has suppressed the previously overheated market sentiment and speculative behavior. Many projects have accumulated ample resources through multiple rounds of financing, and strong enterprises still have the ability to weather the storm.

Secondly, in the long run, similar market crashes have occurred multiple times in the Crypto Assets industry. This situation is particularly common during bear markets and often exposes potential issues. The only difference is the extent of the impact. A well-known project experienced rapid market capitalization growth, entering the top ten last year, which masked many problems in its mechanism, leading to the most significant negative impact this time.

For the industry participants who are still persevering, we have the following suggestions:

1. Focus on product development and do not let market noise distract you.

2. Affected projects should consider repositioning and explore more possibilities.

3. Given that the capital markets are also impacted, one should adjust their mindset when seeking financing. Instead of pursuing overly high valuations, it is better to propose reasonable plans and focus on the resources that investors can bring to the project.

As ecosystem investors, we have always supported the communities, developers, and teams working hard for the future of Crypto Assets and blockchain.

If you are still confident in your project or have any ideas for contributing to the industry, we are always ready to offer assistance, including but not limited to advice, investment, or even funding.

Please remember, "No matter how long the night lasts, there will always be an end, and dawn will eventually come." We will continue to be your loyal friends and long-term supporters. As long as you have confidence in yourself, time will prove everything.