In mid-October, Huobi founder Li Lin and other prominent Asian figures raised $1 billion to launch a digital asset fund focused on Ethereum (ETH).
According to a report by local Chinese news agency SCMP, the plan to establish a $1 billion Ethereum DAT has been suspended.
In addition to Huobi founder Leon Li Lin, the project also included names such as Xiao Feng, president and CEO of HashKey Group, Mike Cai Wensheng, co-founder of Meitu, and Bo Shen, founder of Fenbushi Capital.
“The plan to establish an Ethereum DAT totaling $1 billion has been suspended, and the already pledged funds have been fully refunded to investors,” Chinese crypto journalist Wu Blockchain said.
It is stated that returning the money to investors prevents a possible loss of confidence.
If the project had not been canceled, a company listed on the Nasdaq exchange would have been acquired and the Ethereum treasury company would have continued along that path.
It was reported that Chinese cryptocurrency giants canceled the ETH DAT project due to the general stagnation of the cryptocurrency market.
Experts said the shelving of the Etheruem DAT project indicates that the broader cryptocurrency market has yet to recover from the October crash.