Yi Lihua analyzed the four major reasons for the cold winter of the primary market and called on project builders and head CEX to take joint action to reverse the trend

On October 5, Yi Lihua, founder of LiquidCapital, issued a document to discuss the current situation of the encryption primary market. It said that the main reason for the decline of the primary encryption market is,"The first is that the narrative is shattered. From white papers to institutional endorsements to TVL swipes, the basic market no longer pays. The second is the imbalance of supply. Tens of thousands of projects have emerged, and it is extremely difficult for excellent projects to come out. The third one is the 1 plus 3 unlocking mechanism, which basically kills VCs in a targeted manner and allows the project, MM and the exchange to run first. The fourth is the cost of listing the currency. Why do first-level projects now require high valuations and large financing? The main reason is that the leading CEX is launched, and the average cost will cost tens of millions of dollars." Yi Lihua believes that industry leaders currently need to truly de-buliding directions, such as improving Binance's currency screening method. According to the current model, even when V God's ETH came back, Binance would not be available. The second is to completely abolish the 1 + 3 unlocking mechanism. The VC has borne the greatest risk and should not bear the worst unlocking terms. The success or failure of the project is not decided by the VC at all. Finally, encryption projects need to return to real revenue and repurchase. U.S. stocks have continued to prosper for so many years. The most important thing is performance growth and supervision to give back to shareholders 'interests. This is what industry leaders should do to let the market secondary investors truly find quality projects.