Yesterday (21st), Chinese crypto KOL @Aunt_ww, who has 21,000 followers on social media platform The frequency of currency listing is too fast, and the quality of these projects initiated by VC institutions is not high, resulting in market liquidity being diluted by large-market VC coins, and retail investors eventually become the leeks:
If Binance fails to "do its job", it may be abandoned by users.
Binance now lists coins too frequently. It is sending large-market value VC projects to the market in batches. The market liquidity simply cannot carry so many billions or tens of billions of VC coins. Binance’s listing of coins follows the spirit of profit first. Or follow the fairness-first ethos of cryptocurrency?
Of course, as an exchange and a commercial company, it is normal to focus on profits, but as a leading cryptocurrency exchange native to the crypto, it should not only focus on profits, but also correctly lead the direction of industry development and convey the native spirit of encryption.
The bulk listing of air coins in VC groups with large market capitalization has diluted the originally low liquidity. The activity on the VC project chain with a valuation of billions of dollars is pitifully low. In the end, this is Binance’s coin listing risk evaluation system. Has it collapsed, or has Binance’s values collapsed after cz left?
The principle that water can both carry and overturn a boat has been passed down from generation to generation in China. The overall evaluation of Binance by the majority of users has plummeted in the new cycle. Binance should pay attention to it.
The essential definition of an exchange is a place where users can trade.
However, the closer it is to capital, the farther it is from users.
Exchanges native to the crypto community should stand up and not be the white gloves of web2 world capital. Crypto retail investors will not be able to see the sand in their eyes.
"Duty" is the bottom line that Binance should stick to.
He Yi: If we don’t list the currency, our funds will be diverted by meme coins and funds...
Many community users resonated with this view and commented that they should no longer buy VC coins listed on Binance and become institutional successors.
However, Binance co-founder He Yi explained that even if Binance does not list these projects, the funds will be dispersed by meme coins, on-chain native dogs, fund disks, ETFs, etc. Binance is not what it is now. The main culprits for unsatisfactory market prices:
The crypto is a free market, CEX and CEX, CEX and DEX, the liquidity and trading volume of each trading platform are a total pool, CEX is not a closed market, Binance does not list these projects, these projects also exist, trading volume, funds It will also be distributed to every corner of the entire industry.
In addition to the unlocking of projects invested by VCs, Meme coin, on-chain local dogs, Lumao, and capital disks will all be diverted. After ETF approval, the traditional financial market will also divert funds that flow directly to the crypto.
Many VCs are also going bankrupt
In addition, He Yi also admitted that the core reason for the inflated prices of some tokens is indeed due to their VC background. However, due to the long unlocking time of tokens, many VCs’ actual income after receiving the unlocked tokens is not as good as their investment. funds, so many VCs in the crypto are also going bankrupt:
Looking at VCs again, some VCs are indeed the core reason for the inflated prices, but VCs generally raise funds from LPs for a 7-year lock-in period of 4+3, charging management fees + dividends; VCs generally unlock after one year of TGE (not represents all), so many VCs in the crypto are also going bankrupt, and some VC’s LP investments in the crypto may also return to zero; and projects that have received large amounts of financing have more possibilities to survive the bubble cycle, but the currency price and governance model The fundamentals are determined by the project team. There is no standard answer. Everyone needs to do a more in-depth analysis of the project token.
The rise of Defi has brought more liquidity to the industry, increased freedom, and made it more difficult to formulate rules for CEX. This is the charm of the free market in the crypto. DYOR (Do your own research)
Regarding He Yi's explanation, some community members did not buy it and believed that this was not the reason for Binance to continue to list high market value VC coins. On the contrary, they hope that Binance can support the implementation of projects with small and medium-sized market capitalization and activate protocols with potential, so as to bring hope and confidence to the market. User @AmyWang2010 pointed out this:
In the last bull market, there were at least small market capitalization projects with a market value of tens of millions or millions when they were listed on the exchange. Binance’s users have a wealth-making effect. At the same time, as a leading CEX, it greatly assists the healthy development of the industry and can form a positive cycle.
This round of VC coins currently seems to be a re-creation of the Internet bubble of 2000. A large number of infrastructure projects without many actual users are starting from one billion US dollars, and ultimately exchange users foot the bill. I sincerely hope that, as listed in the new plan, more small and medium-sized market value innovative projects will be supported as soon as possible to activate the potential new protocol ecosystem and inject hope and confidence for positive development into the industry and market.
Extended reading: Meme coins are rushing ahead but the copycat season is not coming. Why don’t retail investors and institutions take over each other’s orders?
