Yi Lihua: The crypto primary market has entered a harsh winter, and four major issues including narrative collapse and supply-demand imbalance urgently need to be addressed

Odaily reports that Yi Lihua, founder of Liquid Capital, stated in a post that the ongoing decline of the crypto primary market is mainly driven by four factors: first, traditional narratives ranging from whitepapers and institutional backing to TVL wash trading are gradually losing effectiveness; second, project supply is severely oversupplied, with tens of thousands of projects competing, making it significantly harder for quality projects to stand out; third, the "1+3" unlock mechanism is unfavorable to VCs; fourth, the listing costs on top-tier CEXs are prohibitively high, pushing primary market projects to seek higher valuations and larger-scale fundraising.

Yi Lihua believes that reversing the current situation requires joint efforts from leading industry participants, including improving the listing screening mechanisms of top CEXs like Binance, abolishing the "1+3" unlock mechanism, and pushing crypto projects to return to real revenue and token buybacks, so that through performance growth and value sharing, secondary market investors can genuinely identify quality projects.