Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
LD Capital founder Yi Lihua said one of the main causes of the cryptocurrency market downturn is the combination of 1+3-year lockup structures and listing fees.
Yi cited what Yi described as a collapse in narratives, saying the market is no longer persuaded by white papers or inflated TVL figures; a supply imbalance, with tens of thousands of projects flooding the market and making it harder for strong projects to stand out; one-year-plus-three-year lockup and unlock mechanisms, which Yi said allow projects, market makers and exchanges to recover funds first and exit while leaving venture capital investors at a disadvantage; and listing costs, with major exchange fees reaching $10 million and pushing up project valuations.
On that point, Yi said Binance needs to improve its listing review process, adding that under the current structure, even Ethereum in its early days under Vitalik Buterin would not be able to list on Binance. Yi also said VCs bear the greatest risk and should not also have to shoulder the worst lockup terms, while a project’s success or failure is never determined by VCs. Yi added that crypto projects need to return to generating real revenue and carrying out token buybacks.