Yi Lihua analyzes the four major reasons for the cold winter in the encryption primary market and calls on project builders and leading CEXs to work together to reverse the decline.

According to BlockBeats news, on October 5, Liquid Capital founder Yi Lihua issued an article discussing the current status of the encryption primary market. He said that the main reasons for the decline of the encryption primary market are: "The first is that the narrative is shattered. From white papers to institutional endorsements to TVL wash volume, the basic market no longer pays. The second is supply imbalance. Now there are tens of thousands of projects, and it is extremely difficult for outstanding projects to come out. The third is the 1 plus 3 unlocking mechanism, which is basically a targeted killing of VCs and letting projects, MMs and exchanges run first. The fourth is the cost of currency listing. Why do primary projects now need high valuations and large financing, mainly a few leading CEX The average cost to go online is tens of millions of dollars.”

Yi Lihua believes that the current need for industry leaders to truly de-buliding is to improve Binance’s currency screening method. According to the current model, V God’s ETH cannot be listed on Binance. The second is to completely abolish the 1 plus 3 unlocking mechanism. VCs bear the greatest risks and should not be saddled with the worst unlocking terms. The success or failure of a project is not decided by VCs at all. Finally, crypto projects need to return to real revenue and buybacks. The U.S. stock market has continued to prosper for so many years. The most important thing is performance growth and supervision to return shareholder benefits. This is what industry leaders should do to allow secondary investors in the market to truly find high-quality projects.