Venture capital firm

RootData: In the first half of this year, 8 projects announced the cessation of operations, including well-known projects participated by venture capital firms such as Vitalik, Coinbase, and Animoca

According to ChainCatchert's message and incomplete statistics from RootData, a total of 8 projects announced their cessation of operations in the first half of 2024, mainly distributed across DeFi (ClayStack, [Gridex Protocol](https://www.rootdata.com/zh/Projects/detail/Gridex Protocol?k=NjM0Mw== "order book-based decentralized trading protocol"), [Hector Network](https://www.rootdata.com/zh/Projects/detail/Gridex Protocol?k=NjM0Mw== "Defi product ecosystem"),) CeFi ([Yield App](https://www.rootdata.com/zh/Projects/detail/Yield App?k=ODM1NA== "digital wealth platform"), HKVAEX, CommEX,) GameFi ([Eternal Dragons](https://www.rootdata.com/zh/Projects/detail/Eternal Dragons - Trailblazer Games?k=NDY3OQ== "epic fantasy game series")/[Trailblazer Games](https://www.rootdata.com/zh/Projects/detail/Eternal Dragons - Trailblazer Games?k=NDY3OQ== "epic fantasy game series"),) and privacy track (Nocturne.It is worth noting that the GameFi project Eternal Dragons/Trailblazer Games previously raised $8.2 million, the privacy protocol Nocturne, which received support from Vitalik, raised $6 million in seed funding, and the liquid staking project ClayStack raised $5.2 million in seed funding led by CoinFund and ParaFi Capital, with support from Coinbase Ventures, Animoca Brands, The Spartan Group, and others.The main reasons for these projects ceasing operations are quite diverse, primarily focusing on non-systemic risks. ClayStack's cessation was due to a lack of product-market fit during its more than three years of operation; Gridex Protocol stated it failed to secure additional funding from private investors and also faced liquidity issues; Eternal Dragons pointed out that Web3 has brought additional challenges to game design, user experience, and development, increasing costs and risks; while Yield App suffered losses because its assets were previously held on the now-defunct FTX exchange.

The founder of crypto venture capital Shima Capital is suspected of embezzlement, and several company executives have resigned

ChainCatcher news, according to Fortune magazine, a survey found that Yida Gao, the founder of crypto venture capital Shima Capital, created a secret offshore entity and transferred assets belonging to his venture capital firm to a company registered in his own name, without the knowledge of other investors in the company. Lawyer Eric Hess stated that this completely violates the conduct permitted under the Investment Advisers Act.Yida Gao has not been charged with any crime, and a representative of Shima Capital stated that the company would not comment on "such regulatory matters." However, according to an anonymous source, Yida Gao's poor performance and behavior have clearly violated the investor protection rules of the U.S. Securities and Exchange Commission (SEC), putting him in a difficult position for raising further funds. A representative from Shima Capital revealed that the company is currently not seeking financing.Shima Capital has also experienced a wave of high-level employee departures in recent months, including Chief Technology Officer Carl Hua and Research Director Alexander Lin, who left earlier this year to start their own venture capital firm, as well as Chief Operating Officer and Head of Compliance Hazel Chen. The departing executives did not respond to requests for comment. The latest SEC filings show that the firm manages approximately $158 million in assets—this figure is down from the $200 million raised in 2022.
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