Yi Lihua proposes industry reforms in response to the crypto primary market downturn

AT A GLANCE

Yi Lihua believes that the crypto primary market downturn is related to ineffective narratives, excess supply, vesting mechanisms, and listing costs.

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⚡️Yi Lihua analyzes the four major reasons for the crypto primary market winter and calls on project builders and leading CEX to act together to reverse the decline

BlockBeats reports that October 5，Liquid Capital founder Yi Lihua published a post discussing the current state of the crypto primary market. He stated that the main reasons for the decline of the crypto primary market are: “The first is that the narratives have collapsed. From white papers to institutional backing to TVL wash trading, the market basically no longer buys it. The second is an imbalance in supply: tens of thousands of projects have now emerged, making it extremely difficult for outstanding projects to break through. The third is 1 plus 3 vesting mechanisms, which essentially directly kill VC, allowing projects,MM and exchanges to exit first. The fourth is listing costs. Why do primary-market projects now need high valuations and large fundraises? Mainly because the average cost of listing on several leading CEX is tens of millions of.”

Yi Lihua believes that industry leaders now need to genuinely move in the direction of building, such as improving Binance listing criteria. Under the current model, even if Vitalik’s ETH had arrived back then, it still could not have been listed on Binance. Next, the 1 plus 3 vesting mechanism should be completely abolished.VC bears the greatest risk and should not be burdened with the worst vesting terms. Whether a project succeeds or fails is fundamentally not determined by VC. Finally, crypto projects need to return to genuine revenue and buybacks. The sustained prosperity of the US stock market over so many years has most importantly been driven by earnings growth and the promotion of shareholder returns. This is what industry leaders should be doing, enabling secondary-market investors to truly find high-quality projects.

Original link https://m.theblockbeats.info/flash/370266

Key points

Liquid Capital Founder Yi Lihua published a post on October 5 discussing the current state of the crypto primary market.
Yi Lihua identified the collapse of narratives, an imbalance in project supply, the “1 plus 3” vesting mechanism, and listing costs as the main reasons for the decline of the crypto primary market.
Yi Lihua suggested improving Binance’s listing selection process, abolishing the “1 plus 3” vesting mechanism, and encouraging projects to return to revenue and buybacks.
The article stated that the average cost of listing on several leading CEX is tens of millions of.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

This is a report about industry views. Yi Lihua believes that the market no longer broadly recognizes certain traditional narratives, that there are too many projects, and that vesting arrangements may increase VC risk, while listing costs may also increase financing needs. He called on industry participants to adjust the relevant mechanisms.

Why it matters to readers

These suggestions concern project financing, token vesting, exchange listing selection, and project return mechanisms, and may affect the rules and costs that primary market participants focus on.

The primary market refers to the financing stage before a project’s token is widely traded;CEX refers to a centralized exchange;TVL usually refers to the total value of assets locked in a protocol;VC refers to venture capital institutions.

Risks and unknowns

The views in the article mainly come from Yi Lihua’s public post and do not mean that Binance or other exchanges have already changed their rules.
The evidence does not provide independent data on “tens of thousands of projects,” listing costs, or the impact of the “1 plus 3” mechanism.
The evidence does not indicate whether the relevant reforms have already produced specific plans or implementation examples.

Yi Lihua proposes industry reforms in response to the crypto primary market downturn

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