Is Binance crazy about VC coins? He Yi: If you don’t go to the market, funds will be diverted by Meme coins, Tugo, etc.

This site (120btC.coM): Yesterday (21st), Chinese crypto KOL @Aunt_ww, who has 21,000 followers on social media platform In spite of the fair spirit of cryptocurrency, he believes that Binance’s current currency listing frequency is too fast, and the quality of these projects initiated by VC institutions is not high, resulting in market liquidity being diluted by VC coins with large market capitalization, and retail investors eventually become leeks. : Binance may be abandoned by users if it continues to fail to do its job. Binance is now listing coins too frequently. It is sending large-market value VC projects to the market in batches. The market liquidity simply cannot carry so many billions or tens of billions of VC coins. Binance’s listing of coins follows the spirit of profit first. Or follow the fairness-first ethos of cryptocurrency? Of course, as an exchange and a commercial company, it is normal to focus on profits, but as a leading cryptocurrency exchange native to the currency circle, it should not only focus on profits, but also correctly lead the direction of industry development and convey the native spirit of encryption. The air coins listed in batches by VC groups with large market capitalization have diluted the low liquidity. The activity on the chain of VC projects worth billions of dollars is pitifully low. In the end, this is Binance’s coin listing risk evaluation system. Has it collapsed, or has Binance’s values ​​collapsed after cz left? The principle that water can carry or overturn a boat has been passed down from generation to generation in China. The overall evaluation of Binance by the majority of users has plummeted in the new cycle. Binance should pay attention to it. The essential definition of an exchange is a place where users can trade. However, the closer it is to capital, the further it is from users. Exchanges native to the crypto community should stand up and not act like white gloves for web2 world capital. Crypto retail investors will not be able to see the sand in their eyes. "Duty" is the bottom line that Binance should stick to.

He Yi: If we don’t list the currency, our funds will also be diverted by Meme coins, funds...

Many community users resonated with this view and commented that they should not buy VC coins listed on Binance anymore. , when the institution takes over.

However, Binance co-founder He Yi explained that even if Binance does not list these projects, the funds will be dispersed by Meme coins, on-chain native dogs, fund disks, ETFs, etc. Binance is not The main culprit for the current unsatisfactory market prices: the currency circle is a free market, CEX and CEX, CEX and DEX, the liquidity and trading volume of each trading platform are a general pool, CEX is not a closed market, and Binance does not have these Projects, these projects also exist, and transaction volume and funds will also be distributed to every corner of the entire industry. In addition to the unlocking of projects invested by VCs, Memecoin, on-chain local dogs, Lumao, and capital disks will all be diverted. After ETF approval, traditional financial markets will also divert funds that flow directly to the currency circle.

Many VCs are also going bankrupt

In addition, He Yi also admitted that the core reason for the inflated prices of some tokens is indeed due to their VC background. However, due to the long unlocking time of tokens, many VCs have been unable to obtain the unlocking tokens. After the currency, the actual income is not as good as the capital invested, so many VCs in the currency circle are also going bankrupt: Looking at VCs again, some VCs are indeed the core reason for the inflated prices, but VCs generally raise funds from LPs in a 4+3 ratio of 7 There is a lock-up period of one year, with management fees + dividends; VCs are generally unlocked one year after TGE (not all), so many VCs in the currency circle are also going bankrupt, and some VCs’ LP investments in the currency circle may also return to zero; Project parties that raise large amounts of financing have more possibilities to survive the bubble cycle, but the fundamentals of the currency price and governance model are determined by the project party. There is no standard answer, and everyone needs to do a more in-depth analysis of the project token. The rise of Defi has brought more liquidity to the industry, increased freedom, and made it more difficult to formulate rules for CEX. This is the charm of the free market in the currency circle. DYOR (do your own research)

As for He Yi’s explanation, some community members did not buy it and believed that this was not the reason for Binance to continue to list high market value VC coins. On the contrary, they hope that Binance can support the implementation of projects with small and medium-sized market capitalization and activate protocols with potential, so as to bring hope and confidence to the market. User @AmyWang2010 pointed out in this regard: In the last bull market, at least there were small-cap projects with a market value of tens of millions or millions when they were listed on the exchange. Binance’s users have a wealth-making effect. At the same time, as a leading CEX, it has a great impact on the healthy development of the industry. Boosting effect and can form a positive cycle. This round of VC coins currently seems to be a re-creation of the Internet bubble of 2000. A large number of infrastructure projects without many actual users are starting from one billion US dollars, and exchange users ultimately foot the bill. I sincerely hope that, as listed in the new plan, more small and medium-sized market value innovative projects will be supported as soon as possible to activate the potential new protocol ecosystem and inject hope and confidence for positive development into the industry and market.

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