Article author: 0x9999in1, MetaEra
On June 19, 2025, at the University of Hong Kong, Jessica Yang, CEO of MetaEra, had an in-depth conversation with Du Jun, co-founder of ABCDE and chairman of Vernal Group. As a classmate of the doctoral program at the University of Hong Kong, Du Jun shared his original intention of returning to school for further studies, the different strategic layouts of ABCDE and Vernal Group, and his insights into the Hong Kong crypto financial market.
Back to school: Reflections on twenty years of systematic entrepreneurship
In 2024, Du Jun formally applied for the doctoral program at the University of Hong Kong, which coincided with his 20th year of entrepreneurship. Looking back at the start of his business in 2004 and his dropout in 2005, Du Jun admitted that he had been "working on the ground" for the past 20 years, focusing on entrepreneurship and investment, and had little time for systematic thinking. 2024 became an important node, and he hoped to transform his 20 years of entrepreneurship and investment experience into a systematic and reusable knowledge framework through the doctoral program.
"My goal is to refine my practical experience in entrepreneurship and investment into a methodology and a structured tool that can be used by myself and my colleagues." Du Jun said that this process is not only a personal further study, but also a reflection and sublimation of past experiences. He hopes to sort out a set of replicable knowledge frameworks from an academic perspective to provide guidance for future entrepreneurship and investment.
The leap from encryption to new technologies such as AI
As the co-founder of ABCDE, Du Jun's influence in the crypto space is unquestionable. However, his new layout, Vernal Group, shows a more diverse strategic vision. In a conversation with Jessica, Du Jun elaborated on the differences between Vernal and ABCDE in terms of positioning, structure and business direction.
As a primary market fund, ABCDE adopts the traditional 5+2 investment cycle. The return pressure brought by external limited partners (LP) makes it limited in supporting long-term projects. "Some projects may take 8, 10 or even longer years to succeed, and ABCDE's cycle is difficult to fully match." Du Jun explained. ABCDE's role is more like a "selector" or "referee."
In contrast, Vernal Group is more like a joint family office, with the main funding coming from Du Jun and another core shareholder. This structure gives Vernal greater flexibility, without the pressure of short-term returns, and can accompany entrepreneurs from a longer-term perspective. "Our money is a relatively long-term fund, it doesn't matter if it's three, five, or ten years." Du Jun emphasized that Vernal's goal is to become a "runner-up" for entrepreneurs.
ABCDE's investment portfolio is 100% focused on the crypto space, while Vernal's strategy is more diversified. Du Jun revealed that Vernal's investment focus has shifted to AI, with crypto projects accounting for only a small part of its portfolio. Vernal focuses on the AI application layer, especially projects that can generate cash flow, improve efficiency or optimize processes.
"We don't invest in computing power or large models, because our capital and resources in North America are not enough to support investment in the corresponding track." Du Jun admitted that Vernal is more concerned about the implementation of AI in practical scenarios, such as AI security, AI talent recruitment, AI taxation and financial tools, etc. These projects aim to "simple efficiency improvement" and are close to market demand, aiming to capture the best returns during the AI explosion period.
Hong Kong: A strategic location for crypto finance
As a leader in the crypto industry, Du Jun is confident about the layout of the Hong Kong market. He believes that as a "bridgehead" connecting the mainland and the world, Hong Kong has unique advantages in terms of geographical location and policy environment. In recent years, Hong Kong has introduced a series of friendly policies, including a stablecoin regulatory framework and a talent introduction program, which have attracted the attention of global blockchain companies and talents.
"Hong Kong's cryptocurrency-related bills are even more advanced and enforceable than those in the United States," Du Jun commented. He pointed out that Hong Kong's stablecoin policy provides a clear compliance path for industry innovation, and combined with its international advantages, it is expected to foster new business models.
The team landed in Hong Kong as early as 2022 through Hong Kong listed company New Fire Technology. It currently has an office and is actively applying for relevant licenses. Among them, financial custody business is Vernal's core business direction in Hong Kong. Du Jun believes that combined with Hong Kong's stablecoin policy, the custody business is expected to give birth to a better business model on this basis, injecting new vitality into the crypto financial market.
Conclusion
From working hard for 20 years to returning to the university for systematic further study as a doctoral student, Du Jun has demonstrated the pursuit of self-iteration as an industry leader. From founding ABCDE to establishing Vernal Group, he has expanded his vision from the encryption field to the AI application layer, and has supported entrepreneurs with a more long-term companionship perspective. At the same time, as an active participant in the construction of the Hong Kong encryption market, Du Jun's insights into local policies and business layout provide important references for the industry. "Keep learning and embrace change to stay ahead in a rapidly evolving industry." This may be the most sincere advice given by the old OG in this industry.
