Yi Lihua: The primary encryption market has fallen into a cold winter, and four major problems such as narrative destruction and supply imbalance need to be resolved urgently.

Odaily Planet Daily News Yi Lihua, founder of Liquid Capital, said in an article that the current continued decline of the primary crypto market is mainly due to four reasons: First, traditional narratives such as white papers, institutional endorsements, and TVL brush volume are gradually ineffective; second, there is a serious oversupply of projects, and competition among tens of thousands of projects makes it significantly more difficult for high-quality projects to stand out; third, the "1+3" unlocking mechanism is unfavorable to VCs; fourth, the cost of listing coins on leading CEX is too high, pushing primary projects to seek higher valuations and larger-scale financing.

Yi Lihua believes that reversing the current situation requires joint promotion by leading industry players, including improving the currency screening mechanism of leading CEXs such as Binance, abolishing the "1+3" unlocking mechanism, and promoting crypto projects to return to real revenue and token repurchase. Through performance growth and benefit feedback, secondary market investors can truly screen out high-quality projects.