The culprit in the crypto- contracts!! PERP
In the past, there were few places to trade futures contracts, and big money dared not touch unlicensed futures platforms. The only way to long on spot trading. Altcoin could only attract more people by creating a get-rich-quick effect through price pumps. Is things different now?
Contracts can be opened everywhere, including knock-off memes!
With 100x contracts, market makers can profit from long and short, so they don't need to raise the leverage too high to still make money. However, we old-timers are used to the old mindset of 10x, 20x, or 100x leverage, so even if a bull market comes in the secondary market, we still think the leverage is too low and don't recognize it as a bull market...
Contract gambling, meme gambling, tokens from serious project teams with little trading volume, delisting and dying...
Binance's 1011 price spike also targeted futures traders! Even 1x leveraged futures were wiped out; the exchange made a fortune, while users and market makers were left with depleted liquidity…
This is the vicious cycle that contracts have brought to the crypto!
Reject contracts and restore a clean environment to the crypto!
