Yi Lihua: It is recommended that trading platforms establish a liquidity control fund to avoid liquidity depletion in extreme situations

On October 11th, Yi Lihua, founder of Liquid Capital (formerly LD Capital), wrote that the market's overall losses, which amounted to tens of billions of dollars, primarily impacted market makers and active traders, have caused far greater damage than imagined. This is especially true for Altcoin, which have experienced a sudden drop to zero. It will take a long time to restore investment confidence and liquidity. Trading platforms are strongly advised to set aside a portion of their profits to establish liquidity control funds to prevent extreme liquidity shortages. The Federal Reserve also has market regulation capabilities, and we believe that platforms with billions of dollars in annual profits have the ability and responsibility to establish such a mechanism. Otherwise, the market will suffer devastating damage, harming not only platform users but also the market and trading platforms themselves.