ABCDE: Why We Led the Investment in NFEx?
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ABCDE: Why We Led the Investment in NFEx?
NFEx is an NFT perpetual contract trading and clearing platform. By providing derivatives trading tools for the NFT market, NFEx will offer hedging, clearing, and risk management capabilities to the NFT industry, and is committed to becoming the largest NFT liquidity platform.
Navigating Web3 tides with focused insights
Author: BMAN
NFEx is a perpetual contract trading and clearing platform for NFTs. By providing derivative trading tools to the NFT market, NFEx will deliver hedging, liquidation, and risk management capabilities to the NFT industry, aiming to become the largest NFT liquidity platform.
ABCDE led NFEx’s Seed round, with Amber Group and Firestone Ventures participating.
1. The Major Problems Facing Today's NFT Market:
1.1. Insufficient Liquidity
The number of NFTs on Ethereum has surpassed 100 million, yet 99.99% of them suffer from poor liquidity.
Even NFT lending projects within the industry lack sufficient liquidity providers and liquidators, leaving the vast majority of NFTs trapped in illiquidity.
1.2. Excessive Transaction Costs
Royalty fees of 5–10% and transaction fees as high as 2.5% on NFT marketplaces further exacerbate an already weak liquidity environment. NFEx’s derivative contract design allows NFT traders to bypass these fees, significantly reducing their trading costs.
1.3. No Short-Selling Capability
Currently, the NFT market remains a one-sided long-only market, lacking financial instruments such as short-selling and hedging to provide protection. NFEx introduces two-way liquidity to the NFT market, offering users greater flexibility for hedging, shorting, or leveraged long positions.
1.4. High Entry Barrier
For mature NFT projects like BAYC or PUNK, even the cheapest floor price has reached an astronomical 60 ETH, making it extremely inaccessible for new or capital-constrained users. With leverage, NFEx enables users to go long or short with as little as 0.1 ETH, allowing broader participation in blue-chip NFT markets.
Despite its immense potential, today’s NFT market urgently needs a platform that offers more derivative tools and injects stronger liquidity. NFEx stands out as a strong contender. Its co-founding team comes from top-tier exchanges and leading liquidity providers, combining deep expertise in the NFT space with professional trading and risk management experience—equipping them with the comprehensive capabilities to build an industry-leading NFT derivatives platform.
2. Becoming the Strongest NFT Liquidity Platform
NFEx’s vision is to build the strongest liquidity platform for the NFT industry—not only serving individual users but also institutions—delivering transformative breakthroughs in NFT liquidity.
On the institutional side, the NFEx team brings years of market-making experience and the foundational capability to solve liquidity challenges for institutional clients. Starting with mainstream NFT assets, NFEx will offer clearing and hedging services to NFT lending platforms and NFT marketplaces. In the future, all NFTFi project liquidations can be completed on NFEx.
For individual investors, NFEx will be the most comprehensive and highest-liquidity NFT futures platform, enabling users to participate in the NFT market with lower entry barriers, cheaper trading fees, and higher capital efficiency—bringing more financial tools and trading options to the ecosystem.
By expanding NFT financial derivatives and lowering user barriers, NFEx will attract more NFT enthusiasts and new users into the market, generating significant new liquidity and becoming a cornerstone of NFT infrastructure.
About ABCDE:
ABCDE is a venture capital firm dedicated to leading investments in top-tier crypto builders, co-founded by entrepreneurs, public company CEOs, and leading researchers with over 10 years of experience in the crypto industry. The co-founders of ABCDE have built multiple billion-dollar market cap companies from the ground up. As founders ourselves, we deeply understand the needs of builders. We’ve already established an end-to-end ecosystem for ABCDE’s Builders—including a public company (1611.HK), an exchange (Huobi), a SaaS company (ChainUP), a media outlet (CoinTime.com), and a developer platform (BeWater.xyz). If you’re a builder with the ambition to change the world, join us in building the next generation of the crypto network.
Twitter: https://twitter.com/ABCDECapital
Website: www.ABCDE.com
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