LD Capital founder blames crypto downturn on lockups, listing fees

LD Capital founder Yi Lihua identified the cryptocurrency market downturn as primarily caused by 1+3-year lockup structures and high listing fees. Yi noted a collapse in market narratives, stating that investors are no longer swayed by white papers or inflated total value locked (TVL) figures. He highlighted a supply imbalance with numerous projects entering the market, making it difficult for quality projects to gain visibility. Yi criticized the lockup mechanisms that favor projects, market makers, and exchanges, allowing them to recover funds before venture capital investors. He pointed out that listing fees on major exchanges can reach 10000000 dollars, inflating project valuations. Yi suggested that Binance should enhance its listing review process, arguing that even early Ethereum would struggle to list under current conditions. He emphasized that venture capitalists face significant risks and should not endure the harshest lockup terms, as a project's success is not solely determined by them. Yi concluded that crypto projects must focus on generating real revenue and implementing token buybacks.