Entering the free market of the cryptocurrency circle: Diversion, VC and the unique charm of Defi
Between CEX and DEX, the liquidity and trading volume of each trading platform are in a large pool. Even if Binance does not list certain projects, they still exist and will cause trading volume and funds to flow to various parts of the industry. In addition to the unlocking of projects invested by VCs, Meme coin, Dogcoin, Lumao, Ponzi, etc. will divert funds. After the ETF is approved, the traditional financial market will also divert funds flowing to the cryptocurrency circle.
Looking at VCs, some VCs do cause prices to be inflated, but they have a 7-year lock-up period for raising funds from LPs. Nowadays, many cryptocurrency VCs have closed down, and some VCs' LPs may have zero investment in the cryptocurrency circle. Project parties that have received large amounts of financing are more likely to cross the bubble cycle, and the coin price and governance model are determined by the project party. Before investing, it is necessary to deeply analyze the project tokens, such as application scenarios, release cycles, etc. There is no standard answer. The rise of Defi has brought more liquidity and freedom, which has increased the difficulty of CEX to formulate rules. This is precisely the charm of the free market of the cryptocurrency circle. #meme板块关注热点 #美联储何时降息?