Letter to Investors: Join Hands to Weather the Winter of the Encryption Industry

In this difficult time, we would like to extend our sincere greetings to our portfolio companies, investors, and partners in the cryptocurrency field. Let us unite and look forward to a better future together.

Recently, affected by the chain reaction of UST decoupling from the US dollar, the cryptocurrency market has experienced severe turbulence. This event may mark the end of the "too big to fail" era, reminding us that anything can happen.

In the face of the significant decline in the global encryption currency market, it is understandable that people have doubts and panic about the industry's prospects. However, we call on everyone to remain objective and rational and to re-examine the current situation with us.

Firstly, market sentiment may be overly amplified. If the secondary market does not decline further, the impact of this round of adjustment may not exceed the "3.12 crash" in 2020. From the perspective of market effects, this adjustment has, to some extent, eliminated the previous overheating sentiment and speculative behavior in the market. Many projects have accumulated sufficient funds through multiple rounds of financing, and strong enterprises will continue to develop.

Secondly, in the long run, similar market crashes have occurred numerous times in the cryptocurrency industry. This situation is particularly common during bear markets, when potential issues often come to the forefront. The only difference lies in the degree of impact. Luna's market capitalization grew too quickly, entering the top ten last year, which masked many problems within its mechanism, leading to particularly severe negative consequences this time.

Therefore, we provide the following advice for participants in the encryption currency field:

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

2. Projects affected by the Terra incident should reposition themselves and explore other options beyond Terra.

3. Given that the capital market has also been impacted, one should adjust their mindset when seeking financing. Rather than pursuing excessively high valuations, it is better to propose reasonable plans that focus on the resources investors can bring to the project.

We have been committed to ecosystem investment, fully supporting all communities, developers, and teams striving for the future of encryption and blockchain.

If you are still confident in your project or intend to contribute to the development of the industry, we are willing to provide assistance, including but not limited to advice, investment, or even funding.

Please remember, "The dawn will eventually come, and the darkness will eventually pass." We will always be your loyal friends and long-term supporters. As long as you have confidence in yourself, time will eventually prove everything.