Chinese crypto founders pause major ether digital asset treasury plan
A group of prominent Chinese cryptocurrency entrepreneurs has put a planned five hundred million United States dollars ether digital asset treasury project on hold as the global crypto market continues to struggle. People familiar with the matter say the decision reflects a cautious shift among industry leaders who have become more sensitive to the recent downturn in digital asset valuations.
The initiative was launched earlier this year by several well known figures in the crypto space. Huobi founder Leon Li Lin, HashKey Group chairman and chief executive Xiao Feng, Meitu co founder Mike Cai Wensheng and Fenbushi Capital founder Bo Shen joined forces with the goal of creating a large scale digital asset treasury firm. The company was designed to focus on investments in ether, which remains the second largest cryptocurrency in the world by market value.
From the beginning, the project attracted attention because of the experience and influence of its backers. These founders are known for shaping some of the earliest and most successful ventures in the Chinese crypto ecosystem. Their plan was to create a treasury structure that could take advantage of long term opportunities in the ether market. They also aimed to increase institutional confidence in large digital asset holdings.
Despite these ambitions, the continued slide in cryptocurrency prices has created hesitation. Market volatility has made it more difficult to commit large capital pools without clear visibility on future trends. According to the individuals familiar with the project, the worsening environment forced the group to reconsider the timing of such a massive undertaking. As a result, they decided to pause development for now.
Before the initiative was halted, the team had already secured one hundred and ten million United States dollars in capital commitments. This early support showed significant interest from investors who believed in the potential of a dedicated ether treasury. However, the founders felt it was more prudent to wait rather than push forward during uncertain market conditions.
Industry observers say the move highlights a broader change in sentiment across the crypto world. Many investors and companies are choosing to slow expansion plans, reduce risk and focus on preserving capital until the market becomes more stable. While this pause may delay the launch of the digital asset treasury firm, it does not necessarily mark the end of the idea. People close to the project believe it could be revived if market conditions improve.
For now, the founders are monitoring the landscape and evaluating the right moment to re engage. They still view ether as a strong long term asset, but they prefer to approach the market with caution rather than rush into a volatile environment. Their decision reflects a strategic effort to balance ambition with responsibility as the crypto industry navigates a challenging period.
