The three-party conflict intensifies. Is the era of hair-pulling over? What do industry insiders think?

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区块律动BlockBeats
half a month ago
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Today, the market has indeed changed again. The internal fighting between LuMao Studio and L2 Project has turned into a farce. The LuMao era may be coming to an end.

Last weekend, the conflict between VC coins, exchanges and retail investors reached its recent peak under the catalysis of two long articles by Binance co-founder He Yi. On June 20, the project token called Lista DAO was launched on the platform as the second Launchpad project on Binance Megadrop and was open for trading. Because the Lista DAO team members include former Binance employees, the predecessor of the project has also received investment from Binance Labs. Under multiple blessings, many users are optimistic about LISTA and participate in secondary trading. However, in the overall weak market, LISTA did not bring any surprises to retail investors, but fell all the way. This seems to be the last straw that broke the camels back. The markets anger has gradually spread from dissatisfaction with VC coins to Binances frequent listing of coins but ignoring the interests of secondary users.

On June 21, He Yi responded by writing a post, saying bluntly that even if Binance does not list new projects, funds will be diverted due to token unlocking, Meme coins, etc.; Some VCs are indeed the core reason for the inflated prices, but VCs generally raise funds from LPs with a 7-year lock-up period of 4+3, and collect management fees + dividends; VCs generally unlock one year after TGE (not all), so many VCs in the cryptocurrency circle are also going bankrupt, and some VCs LPs investments in the cryptocurrency circle may also return to zero.

The next day, He Yi once again wrote a review of the iconic development milestones of the cryptocurrency industry, from ICO and IEO to DeFi nesting dolls, and said, Today the market has indeed changed again. The fratricide between LuMao Studio and L2 project has turned into a farce, and the LuMao era may be coming to an end.

The three-party conflict intensifies. Is the era of hair-pulling over? What do industry insiders think?

The two long articles point out the current market situation: the prosperity of the ICO period (copycat bulls) expected by retail investors never appeared again, and the years-long expectation of airdrops was dashed; under the tight market liquidity, the contradictions between retail investors and exchanges and VCs intensified. Retail investors generally believe that VCs take tokens with low chips, and the unlocking selling pressure pours into the market. On the other hand, exchanges frequently list coins, exacerbating the diversion of funds, while new coins perform poorly. Once retail investors take over, they will be harvested.

He Yis long article also triggered a two-day debate. Many industry insiders expressed their opinions. BlockBeats summarized them as follows

Support Binance

Data collation KOL killthewolf.eth

You bought a bag of rice in a supermarket, and the rice depreciated the next day. You blamed the supermarket owner for putting too many new varieties of imported rice on the shelves recently, which caused the rice in your hand to depreciate. I think this logic is a bit one-sided. The fundamental reason for determining the price of rice is still the supply and demand relationship. You can blame the producers for constantly producing new varieties of rice, or blame the village for not having new people move in to increase the demand for rice. But the supermarket is just a middleman from beginning to end, and there is no way to determine the price of rice. Moreover, there are countless supermarkets in this village, and Binance is just one of them. Even if Binance refuses to put new varieties of imported rice on the shelves, there will be a bunch of supermarkets rushing to put them on the shelves. This is the law of the world.

KOL, senior practitioner Zi Jing

It has been observed that the public opinion has been very serious about the listing of ZKSync recently. But in fact, I cant figure it out. CEX is not a law enforcement agency. In addition to having some deterrent effect on the project partys Rug behavior to a certain extent, it is impossible and has no obligation to supervise whether the project party is doing evil or insider trading. What Yijie said here is still very objective. Binance does not list these projects, but these projects still exist. If users really want to buy, they can buy them on the chain even if they are not on CEX. CEX listing coins only provides a channel. CEX needs traffic. Where there is traffic, there are potential new users, and CEX should appear there. There is no problem from the business logic. CEX only provides users with the convenience of buying coins, but it cannot change and should not affect users buying and selling decisions.

In addition, whether it is Binance or OKX, or any other large exchange, it cannot decide whether a project is malicious, so please manage your wallet and do not let the listing of a certain large exchange determine your underlying buying and selling principles. If your investment decision is affected by listing on a large exchange, and the purchase leads to losses, please bear the consequences of your gamblers mentality. In other words, if retail investors can reach a consensus, they will resolutely resist the evil project parties and not provide any liquidity to such projects. There will be no buying orders. However, no matter how strong the market makers are, without the market to take over, it will eventually go to zero. At this time, there is no need for users to advise. When the time comes, the large CEX will also abandon it. This should be its fate. But the opposite is true. There are too many speculators in this market. They always think that they are the smartest one between information gap and market sentiment. Then they have to bear what they should bear. Profits and losses come from the same source.

Questioning Binance’s inaction

Individual investor Amy Wang

In the last round of the bull market, there were at least small-cap projects with a market value of tens of millions or millions when they were listed. Binance users have a wealth-creating effect. At the same time, as a leading CEX, it has a great boost to the healthy development of the industry and can form a positive cycle. This round of VC coins currently looks like a re-creation of the Internet bubble in 2000. A large number of infrastructure projects without many actual users are listed at a price of one billion US dollars or more, and finally the exchange users pay for it. I sincerely hope that the new plan will support more small and medium-cap innovative projects as soon as possible, activate the potential new protocol ecology, and inject hope and confidence in positive development into the industry and the market.

Crypto KOL bit 一

After a new project is listed on Binance, if it does not perform well, it is difficult for ordinary retail investors to make money. However, Binance is still frequently listing new coins with high market value. Ordinary retail investors have fewer and fewer opportunities to make money on Binance. Of course, you can say that whether the price of the currency performs well is the business of the project, and Binance is just a trading venue and does not intervene in the price of the currency. But it is undeniable that with the influence and traffic of Binance, the first cryptocurrency exchange in the universe, Binance frequently lists coins, which objectively speaking will undeniably dilute a lot of attention and liquidity. Of course, you can also say that if these projects are not listed on Binance, they will also be listed elsewhere. Binance is just an exchange that provides transactions. But given Binance’s current status in the hearts of retail investors, Binance is more than just an exchange. Of course, you can say that you are responsible for controlling the speed of listing coins and taking the responsibility of industry leadership. You can say that this is a kind of moral kidnapping. You are a businessman and should talk business. But you should not forget that a few months ago you wrote a letter to call on everyone to sign and call for CZs judicial case. Everyone also took the initiative to jointly write letters and post videos for CZs US judicial case. I still remember them vividly. If Binance was an unknown small exchange, I believe everyone would not bother it, but Binance is an exchange with most of the trading share in the currency circle. Such influence and every move have a great impact on the crypto circle. Everyone used to support Binance, CZ and Yijie. It was because Binance was a leading exchange with industry responsibility at that time.

Binance is now listing coins too frequently, and is delivering large-cap VC projects to the market in batches. The market liquidity simply cannot bear so many VCs worth billions or tens of billions. Is Binance listing coins in accordance with the spirit of profit first or the spirit of fairness first in cryptocurrency? Of course, as an exchange and a commercial company, it is normal to talk about profits, but as a leading cryptocurrency exchange native to the currency circle, it cannot only focus on profits, but should also correctly lead the direction of industry development and convey the spirit of crypto-nativeness. The large-cap VC-organized air coins listed in batches have diluted the originally limited liquidity. The VC projects with a valuation of billions of US dollars are listed online, but the on-chain activity is pitifully low. Is it because the reputation system of Binance listing coins has collapsed, or has Binances values collapsed after CZ left?

The truth that water can carry a boat but can also overturn it has been passed down from generation to generation in China. In the new cycle, the overall evaluation of Binance by the majority of users has taken a sharp turn for the worse. Binance should pay attention to this. The definition of an exchange is essentially a place to trade for a wide range of users. However, the closer it is to capital, the farther it is from users. Cryptocurrency-native exchanges should stand up and not become the white gloves of capital in the web2 world. Cryptocurrency retail investors cannot tolerate any sand in their eyes. Duty is the bottom line that Binance should stick to.

Other views and analysis

Xingkong, founder of BixinGroup

A bunch of leeks questioned VC coins. In fact, they don’t understand. If there is no VC to step on the minefield in front, they will face being cut. I have met many projects that skipped VC and directly raised funds from KOLs, because they are easier to deceive and have their own traffic. The project parties have never met such good leeks. In fact, it is a normal strategy for VC to follow the trend of venture capital, but it is hard for VC’s LPs, who actually paid money. Ordinary leeks can still enjoy the pain of losing money, while LPs don’t even know how they lost money.

VCs are actually the weakest big investors in this game. The big investors don’t cry out for injustice, but the platforms that have been making steady profits by collecting fees and listing fees cry out for injustice. The world is really treacherous. Think about it, if employees of a big firm can get rich, where does their money come from? Isn’t it all your money? The main money is from VCs.

The three-party conflict intensifies. Is the era of hair-pulling over? What do industry insiders think?

Encrypted KOL Chuanmu

Binances strategy is difficult to break through. Binance joins forces with its own factions institutions and project owners to set up a new coin harvesting scheme, and enters the game as an investor to get chips. Then it distributes a portion of chips to BNB big holders to form a community of interests. Before listing the coin, it gives free quotas to big and small KOLs to be responsible for publicity. Once there is a public opinion that is not favorable to Binance, BNB big holders and KOLs who benefit from the new coin as a salary will collectively move out to reverse the public opinion. Either a new technical leader with leadership will come out with his own traffic to build a new transaction, free of handling fees, and mining the platform coin for a year through trading and placing orders. Otherwise, it will be difficult to change all this, and there is no one who can break the situation. Now retail investors are all pigs. Who lets them monopolize the market? The transaction volume and user base are the largest, so they can only be harvested.

Crypto KOL BitSha

I have been in the crypto market for many years and have never taken any money from Binance, so I can be objective. Binances PR should not treat Sha Ges post as negative, because Sha Ge is objective and long-term thinking for the industry and Binance.

1. The ICO, DEFI era and IEO era summarized by Sister Yi are also an era of mixed good and bad.

In fact, both ICO and Defi have a lot of pitfalls. At that time, the dividends were indeed more significant. But retail investors are also extremely likely to lose money. As for IEO, the hit rate is very high. It is also difficult to get the quota for good projects. There are a lot of studios scrambling for the lottery and the KYC industry chain. It is difficult for honest retail investors to make money. Retail investors are the most vulnerable group in any era and the group that needs the most protection.

2. Today, Binance is a multi-cap head platform that integrates multiple important roles such as exchanges, securities firms, securities regulatory commissions, clearing and settlement institutions, primary market investment and mergers and acquisitions, and listed company groups. Please read this sentence carefully. In the traditional securities market, every role of Binance must be subject to strict supervision. Every role has the ability to do evil without supervision. Such a huge ability must correspond to huge industry responsibilities. What are these responsibilities? This is a question that Binance needs to think about, which is related to the long-term development of Binance.

3. CZ said he was building. Binance’s role is not a project party, but a multi-cap monopoly head platform that integrates multiple important roles such as exchanges, securities companies, securities regulatory commissions, clearing and settlement institutions, primary market investment and mergers and acquisitions, and listed company groups. Binance is a role far beyond the project party, and its responsibility is not to build. In fact, Binance has never focused its main energy on building, but on maintaining its leading position in the exchange. The community has never expected Binance to build anything. A good referee is precisely one who does not play the game himself.

4. The discussion between VC and LuMao Studio is just a small wave in the tide of history. VC provides funds for the primary market, which is an ancient industry. Studios make money by brushing orders and brushing data for project parties, which is also an ancient practice. But generally speaking, the securities market cracks down on VCs sudden investment and abnormal changes in equity before listing. The China Securities Regulatory Commission will also strictly investigate the data falsification of project parties. This crackdown and supervision puts multiple roles in balance. At present, VC coins are hated, and LuMao Studio and project parties are fighting. This is a rebalancing process. I hope that exchanges led by Binance will join this rebalancing process, sacrifice some of their own short-term interests, and allow the industry to develop more healthily.

We can discuss rationally, but we don’t want KOLs who take Binance’s money to come here to make trouble. You don’t care about retail investors or the development of the industry, but only care about your own 400 U. I am not as brave as you. Finally, I will end with Stephen Chow’s line: The greater the ability, the greater the responsibility, you can’t avoid it.

Web3 Entrepreneurs

This industry will not change, we can only change our position. Today, He Yi wrote that the ICO in 2017, the IEO in 2021, and even the cash-in strategy in 2023 are no longer suitable for the current market. As a whistleblower, she is also reminding everyone that it is time to change the past money-making logic, which shows that this market has really reached a turning point.

1. Lu Mao will not disappear: The definition of Lu Mao itself is very broad. It is not just a simple batch of accounts to get chips, but it is also a way of thinking, which is to continuously look for arbitrage opportunities in this market and find new asset issuance opportunities to scale up. The way of obtaining early chips will only change, not disappear, but the era of simple, crude and mindless account registration in the past is gone forever.

2. What remains unchanged: Everyone is concerned about how the future will change. In fact, it is better to think more about which parameters of the industry will not change in the next five years. Then we only need to continue to polish these unchanged parameters so that we can have a first-mover advantage when new opportunities arise. For example, the four elements of the wool track are investment research, capital, technology, and manpower. No matter how the track changes, these four elements are indispensable.

3. The more and more effect: In addition to these four factors, there are also influence, niche, circle, expertise, judgment, etc. What will not change in the future is that the greater your influence, the higher your resource distribution rights, and the more scarce resources will be inclined towards you. The higher your niche, the closer you are to the source of information, and your chance of winning is higher than others with the same opportunity. The higher the quality of your circle, the faster you grow and the better the resources you get.

4. Look inward: The same is true in Texas Holdem. We should pay more attention to the quality of decision-making rather than winning or losing a game. As long as we add the weapon of time and continuously optimize the quality of our decision-making, the factors of decision-making are sufficient, and the winning rate is higher than others by even a few points, the results will vary greatly in the long run. The core logic is to look inward and not focus on the parameters that we cannot control.

5. The evolutionary path will not change: If we observe the history of Internet development, we will find that the trend of class solidification will not change in the past 20 years. 2% of people will have 98% of the right to allocate resources. For example, in Tencent, even if it is the same person, joining after 2005, 10 years later, and 18 years later will have completely different results. This will not change with your personal will.

6. Our industry will also follow this path, and the situation of class stratification has gradually emerged. What can we do as individuals? If we don’t want to be exploited as the bottom in the future, we must pay attention to our own growth rate. The growth rate must be far higher than the industry average. We must accumulate our own influence, professional ability, and ecological niche, because the future trend is to be organized, and the deterministic long-term profits will be eaten up by professional organizations.

7. My current response strategy: light asset operation, in line with the anti-fragile model. The current stage is a turning point for the wool-pulling track and also a turning point for the industry. During the turning point time window, I will adopt a lighter approach to operate the team and reduce operating costs. When a new right breakthrough point appears, I will continue to operate on a large scale. This is the more difficult stage in Texas Holdem. You cant turn over your range no matter what you do. At this time, you must learn to wait and wait patiently for your range. But before this time point arrives, avoid consuming more gas, and the most important thing is not to leave the table.

8. The law of survival of the fittest in any industry will not change. All we can do is change our position. The arbitrage opportunities in the crypto industry will always exist. All we have to do is to have chips on the table to bet when the opportunity comes.

Crypto KOL CryptoMaid Crypto Maid

The era of stroking hair is over, and different groups of people are not saying the same thing.

1. What ordinary users say is: You can’t make money from swiping, the era is over

2. Investors say that they are unwilling to use their own invested money to boost the initial circulation, forcing themselves to open short positions for hedging and to cover the project party’s cashing out.

3. The project owner said: relying on falsifying user data and fooling investors, the era is over. The consensus has broken down. One of the problems is that the Ponzi property of this model is too low, and it eventually becomes a PvP split, and no one takes over. Ponzi can make everyone rich on paper, and Ponzi can attract users outside the circle. Everyone knows that Edison tested more than a hundred materials to find tungsten filaments to make light bulbs. Few people know that he had melted more than a dozen rounds before finding tungsten filaments. If he couldnt find tungsten filaments in the end, then all the more than a hundred experiments before that were Ponzi.

The three-party conflict intensifies. Is the era of hair-pulling over? What do industry insiders think?

InvestorsKay Capital

VC coins and high MC/FDV are superficial, and the deeper level is the average cost of chips. If the average cost of chips of a coin/stock is 1%-10% of the current price, it would be a miracle if there is a second wave of pull-up in the short to medium term. The average cost of VC coins after weighted unreleased chips is too low.

Crypto KOL Neso

After being criticized for listing VC coins, first-tier exchanges such as Binance and OKX may accelerate the listing of small and medium-sized meme coins to win retail reputation and trading volume. You can pay attention to the market value range between 100-500 million, the number of holders is more than 10,000, the community foundation is good, and the targets have been fully washed out.

Encrypted KOL PumpLUO

Many people question the high valuation and high unlocking of institutional VC coins. In fact, they are all being led into a trap. The biggest damage to the market and the biggest meat of the exchange is the contract leverage! 1. Divert funds. 2. Separate liquidity. 3. Naked short selling, contract trading and the issuance of derivative products that have nothing to do with the coin. 4. Rapid consumption of retail investors funds (crazy opening of the VIP policy to attract orders).

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