News on the evening of the 23rd!!!
In the free market of the cryptocurrency circle, discussions about which currencies Binance should list and which currencies should not be listed are common.
However, we must realize that whether it is CEX (centralized exchange) or DEX (decentralized exchange), they together constitute the overall liquidity of this market.
Each trading platform has its own liquidity and trading volume, but this is not a closed system. Even if Binance does not list certain projects, these projects still exist in the market, and trading volume and funds will flow to every corner of the industry.
In addition to VC (venture capital) investment projects entering the market after unlocking, there are also Meme coins (meme coins), small projects on the chain, wool activities, capital plates and other factors that are dispersing the funds and trading volume of the market.
More noteworthy is that with the approval of ETFs (exchange-traded funds), funds from traditional financial markets will also flow directly into the cryptocurrency circle, bringing new vitality to the market.
Speaking of VC, although some VC investment behavior may indeed lead to inflated prices, VCs usually have a 7-year lock-up period of 4+3 years when raising funds from LPs (limited partners), during which management fees and dividends are collected.
VCs generally unlock their investments (not all) one year after TGE (token generation event), which has also caused some VCs in the cryptocurrency circle to face difficulties or even go bankrupt. And some VCs' LPs may also face the risk of zero funds when investing in the cryptocurrency circle.
For those project parties that have obtained large amounts of financing, they have more possibilities to cross the bubble cycle, but the fundamentals of the currency price and governance model are still determined by the project parties themselves, which requires investors to conduct in-depth project token analysis, including the application scenarios of tokens, release cycles, holding ratios, initial circulation, etc.
The rise of Defi (decentralized finance) has brought more liquidity and freedom to the industry, but it has also brought challenges to CEX's attempts to make rules. However, this is the charm of the free market of the cryptocurrency circle.
As investors, we need to be cautious and rational, and conduct sufficient research and analysis to make wise investment decisions in this market full of opportunities and risks.
Remember, always DYOR (do your own research) before investing
