According to ChainCatcher, in response to the recent issue of Binance listing coins too frequently and sending large-cap VC projects to the market in batches, which has caused the market liquidity to be unable to bear, Binance co-founder He Yi responded that the cryptocurrency circle is a free market, and the liquidity and trading volume of various trading platforms are shared. Even if Binance does not list new projects, these projects will still exist, and funds will be diverted to the entire industry.
In addition to the unlocking of VC-invested projects, Meme coins, on-chain local dogs, furry traders, and Ponzi schemes will all be diverted. After the ETF is approved, the traditional financial market will also divert funds that flow directly into the cryptocurrency circle.
She pointed out that some VCs did cause inflated prices, but VCs generally have a 7-year lock-up period, and the unlocking period is usually one year after TGE, so many VCs are also going bankrupt. Projects that receive large amounts of financing have more opportunities to survive the bubble cycle, but the price and governance model of the currency are determined by the project party, which requires in-depth analysis.
He Yi also mentioned that the rise of Defi has increased market liquidity and freedom, making it more difficult for CEX to formulate rules, which is the charm of the free market in the cryptocurrency circle. She reminded everyone to do their own research (DYOR).
