Analyst: FTX clearing has given rise to a lock up token arbitrage mechanism, which may be the main reason for the poor performance of the cryptocurrency market in this round Odaily Planet Daily News: Crypto analyst Willy Woo stated in an article on X platform that the current market sentiment is sluggish and the overall performance of altcoins is poor. The core reason can be traced back to the asset clearing mechanism of "locked token discount trading+futures hedging" that emerged after the bankruptcy of FTX. During the FTX clearing process, a large number of SOLs that were locked up were sold under a "pay first, pay later" agreement. Due to limited liquidity, they were usually traded at a discount of over 60%. Some hedge funds bought them and short them in the futures market to hedge price risks, and combined pledge and basis returns to achieve almost risk-free returns of about 70% -80%. Willy Woo believes that this strategy subsequently spread in the industry, with a large number of project parties and their foundations selling lock up tokens to hedge funds in advance. The latter used the derivatives market to hedge and release selling pressure, making it difficult for ordinary investors to obtain excess returns, which became an important reason for the overall poor performance of this cycle. This means that some projects' nominal future unlocking selling pressure has been digested in advance, and the actual selling pressure in the next bull market may be lower than expected. Ordinary investors in the cryptocurrency market find it difficult to establish an advantage, and it is recommended to prioritize core assets such as Bitcoin.