The biggest problem in the crypto industry in recent years has been the decline in innovation. This problem stems from two main sources: first, the tightening of crypto policies by the previous US administration, which should be resolved with the passage of the Crypto Structure Act; and second, Binance's requirement for projects to lock up crypto VCs for 1+3 years. While Binance's initial intention was good—to cultivate a long-term investment mindset—the current consequence is that project teams, market makers, and exchange Liquidity exit first, while VCs are left with nothing during the long unlocking process. VCs already bear the greatest risk in the primary market, yet they also bear the risk of being the last to exit, clearly contrary to traditional investment markets. The result is the collective demise of crypto VCs, making it difficult for high-quality entrepreneurs to raise funds, and reducing industry innovation. @cz_binance suggests to CZ that a better exit mechanism be provided for crypto VCs to revitalize VC capital, which would benefit industry innovation and facilitate the listing of high-quality assets on exchanges.
