[Yi Lihua Analyzes Four Major Reasons for the Crypto Primary Market Winter, Calls on Project Builders and Leading CEXs to Act Together to Reverse the Downturn] BlockBeats News, October 5 — Liquid Capital founder Yi Lihua published an article discussing the current state of the crypto primary market. He stated that the main reasons for the decline of the crypto primary market are: 'First, the narrative has collapsed. From whitepapers to institutional endorsements to inflated TVL figures, the market essentially no longer buys into it. Second, there is a supply imbalance. With tens of thousands of projects emerging, it has become extremely difficult for outstanding projects to stand out. Third, the 1+3 unlocking mechanism essentially targets and kills VCs, allowing projects, market makers, and exchanges to exit first. Fourth, the cost of listing. Why do primary market projects now require high valuations and large fundraising? Mainly because listing on leading CEXs requires an average cost of tens of millions of dollars.' Yi Lihua believes that the industry leaders need to genuinely focus on building. For example, Binance should improve its listing selection process. Under the current model, even Vitalik Buterin's ETH back in the day wouldn't have been able to list on Binance. Secondly, the 1+3 unlocking mechanism should be completely abolished. VCs bear the greatest risk and should not be subjected to the worst unlocking terms. Whether a project succeeds or fails is fundamentally not determined by VCs. Lastly, crypto projects need to return to real revenue and buybacks. The sustained prosperity of the U.S. stock market over the years is primarily due to performance growth and the emphasis on returning value to shareholders. This is what industry leaders should focus on—helping secondary market investors truly find high-quality projects. [Original Link]