Is it easier to honestly build a project for a long time while doing a good job of market value management, or is it easier to build a project in a bull-bear cycle, pull investment from left hand to right hand, and then end it in one wave? This is the common choice faced by all new projects in the entire cryptocurrency circle.
It is estimated that in the next cryptocurrency bull market, reasonable valuation and circulation release assessment will gradually become the mainstream way for trading platforms to list currencies. The ultimate goal is to let the project grow together with the cryptocurrency industry. Even if the project is aborted or aborted in the middle, the money raised will be relatively limited, rather than the platform hurting a large number of retail investors.
Full circulation is the best state of a currency. But full circulation also has its own problems. The holding of coins is scattered and it takes a long time to absorb funds. This is a very unfavorable factor for a main force in market value management, especially in the cryptocurrency circle. The window period of a round of cryptocurrency bull market is relatively short. If it is a large currency with siphoning ability, such as BTC, ETH, SOL, it is actually okay. But if it switches to a small-cap currency, the situation will become very difficult.
I think the most typical representative here is People. The biggest problem of PP now is that the holding of coins is scattered, and the narrative is not sustainable, so it has been abandoned by the main force. From 21 years to now, it is just a crazy pull of the market, and it is impossible to build a sustainable ecosystem. Feedback to the price, naturally there is no sustainable rise, and it will be impotent after two or three days. Typical hot money trading method.
Another most representative fully circulated coin Slerf this year remains to be seen. If you look at it from the perspective of the main force, this coin still has great potential.
Back to reasonable valuation and circulation assessment release. This is a relatively reasonable way for a project. Without the support of institutions, it is indeed very difficult for many blockchain start-up projects to carry out follow-up work. This is an unavoidable reality.
As a venture capital institution, it is understandable that institutions choose to recover investment returns when the market recovers. But this year, the performance of institutions and project parties is too ugly, or it can be said that they are smarter. The listing is to sell, sell, sell, and the profit-seeking and short-term nature of capital are vividly demonstrated.After selling the chips and cashing in, they will move on to the next project, which will naturally leave a mess. But from a broader perspective, this way of selling, selling, selling is a harm to the project, retail investors, platforms and even the entire industry. After the platform is listed, it is unlikely to have a large amount of shipments in such a short period of time.
We must take into account the special role of institutional venture capital and the changes in the market environment of the entire industry. The mechanism of reasonable valuation and assessment release (for example, how much proportion will be released when the price of the currency reaches a certain price, this method has appeared in the previous bull market, but it needs to be further improved) should be further improved, rather than simply releasing the mechanism within a time period, so that institutions, market makers and project parties can concentrate on continuing to develop and improve the project. This is the long-term way.
I look forward to the emergence of projects with reasonable valuation and reasonable release mechanisms. It is estimated that it will be possible only in the next bull market. I hope to be slapped in the face, so that I will be happy.