Yili Hua Points Out Four Major Issues Facing the Crypto Primary Market

Yili Hua, founder of Liquid Capital, stated that the continuous decline of the crypto primary market is mainly due to four reasons: first, traditional narratives such as white papers, institutional endorsements, and TVL (Total Value Locked) metrics are gradually losing effectiveness; second, there is a severe oversupply of projects, with tens of thousands of projects competing, making it increasingly difficult for quality projects to stand out; third, the "1+3" unlocking mechanism is unfavorable to venture capitalists (VCs); and fourth, the high listing costs on leading centralized exchanges (CEXs) lead primary projects to seek higher valuations and larger-scale financing. Yili Hua believes that reversing the situation requires the joint efforts of leading industry participants, including improving the listing selection mechanisms of top CEXs like Binance, abolishing the "1+3" unlocking mechanism, and promoting crypto projects to return to real revenue and token buybacks, so that secondary market investors can truly identify quality projects through performance growth and profit sharing.