What are the characteristics of the projects that have been put down by the mainstream exchange
By Hu Hu, ChainCatcher
In the encryption industry, once the "surplus currency" meant the birth of another myth of wealth, and now it may be just a prelude to a long process。
On March 18th, it was announced that it would stop trading and lay down eight tokens, including:Ampleforth(FORTH)Hooked Protocol(HOOK)IDEX(IDEX)Loopring(LRC)Neutron(NTRN)Radiant Capital(RDNT) ETC。
On March 16, Coinbase announced 25 contractual deals, includingREZ- PERPBABY- PERP, GMX-PERP, T-PERPYB- PERPHOME- PERPCATI- PERPDOGS- PERPDRIFT- PERP ETC。
On March 12, D.A. Alpha announced that more than 21 tokens, including DGC, would be removedGeneralGPTBNB Card ()BNB Card, PFVS()Puffverse, RDO()ReddioMILK ()MilkyWayTAT ()Tell A TaleWait。
IN EARLY JANUARY, OKX ANNOUNCED SEVEN TOKENS, INCLUDINGULTII don't knowGEARI don't knowVRAI don't knowDAOI don't knowCXTI don't knowRDNTandELONI don't know. In addition, Bithumb and Upbit have announced several currencies to lower their shelves。
This “downside storm”, which cuts across the spot and derivative markets, sends a chilling and clear signal to the outside world that a first-line encrypted currency exchange is undergoing a paradigm shift from an “extension” to a “constriction” of assets。
They are reassessing the subject matter of the assets, establishing new mechanisms for the loading and laying of coins based on the liquidity, quality, transparency, etc., which can also better protect investors ' interests while acting as a deterrent to other on-boarding or potential currency items。
I. “Zombieization” survives under bare clothes
THIS “CLEANING” LIST INCLUDES A NUMBER OF TRACK STARS THAT HAVE BEEN GIVEN HIGH HOPES, SUCH AS LRC, FORTH, NTN, RDNT, ETC。
Of whichLoopring(LRC) With the narrative “Layer2 amplification + go-centralization trading” became the new star of the DeFi track and the light of the Chinese projectELONWith the Mask's IP effect, the market value is rising rapidly in a short period of timeMilkyWay(MILK) has received $5 million in financing under the label of Celesti ' s mobile pledge solution, backed by well-known institutions such as Polychain and Hack VC。
There is no shortage of fine narratives in the encrypted market in the cattle market. DeFi, NFT, Meme, InfoFi, RWA, and others are running in circles. A slogan, a white paper, can easily absorb millions of dollars, and a brand-new concept can sustain hundreds of millions of valuations and be favoured by front-line exchanges。
But most of these seemingly bright projects have the same fatality -- lack of core technologies and sustainable business models. When the heat in the market fades and narratives become perjured, the short boards of these projects are amplified indefinitely。
For an exchange, the maintenance of these loss of community mobility projects means not only a huge compliance cost, but also an invisible drain on platform credit. In the age of stock games, the exchange no longer tolerated that “air assets” had long occupied valuable liquidity resources, which was a corollary of the brutal development phase of the past。
Throughout these projects, DeFi and the game area are areas of serious disaster and cover the areas of Layer 1, DAO, which correspond to changes in the mainstream narrative of the industry. Even more serious than the lower shelf, many projects have been declared out of operation, which, according to RootData, includes decentralised storage platformsDathavenDeFi options agreementPolynomial, DAO GOVERNANCE PLATFORMTallyThe universeBloktopiaThe incubatorConnieData analysis platformParsecWait。
At the same time, the encrypted currency exchange has successively focused its attention on monetized stocks, which have clear business models and market competitiveness, while addressing the time constraints on transactions in traditional stock exchanges. The exchanges of Binance, Kraken, OkX, Bitget, Bybit and Gate have all supported transactions involving such assets, the latter three of which have supported over 100 equity assets in several months, showing strong strategic ambitions。
Transparency is becoming a red line
In addition to insufficient kinetic energy within the industry, lack of transparency is one of the main reasons for the downswing of many projects。
With increased regulation of the encryption industry and increased investor risk awareness, the transparency requirements of exchanges for token projects have become increasingly stringent. According to the official network, the terms "public communication, community participation and transparency of the project party" and "commitment of the team to the project" have been explicitly included in the assessment of the health status of the currency
This means that clear teams and road map information, improved information disclosure mechanisms and active community communication channels are essential for any currency. For many projects, however, the garbling of the “no more money” became an awkward and cruel state of affairs。
According to RootData’s recently introduced transparency score, Binance and other exchanges have achieved less than 70% transparency in most of the next coins, with varying degrees of under-disclosure of project progress and absence of team members, and stagnation in community communication, which can lead to a significant weakening of user interest in the project and even willingness to trade, creating a vicious circle of under-trade and liquidity。
By YZi LabsUlteverseFor example, since January, the project has issued almost no tweets and transmitted only a few messages, as did several core team members。
Such “black boxing” operations not only challenge the risk line of the exchange, but also directly undermine the right to information of the diaspora investors. The exchange's collective “scrambling” this time was essentially a supply-side reform aimed at “bad currency”, with more resources invested in highly transparent and competitive assets. In this way, the exchange is creating an institutional deterrent to on-site projects: transparency is no longer a soft “plus” but a necessary option for survival。
Against the backdrop of accelerated penetration of traditional capital and the progressive clarity of the global regulatory framework, the competitive dimension of exchanges has changed qualitatively, focusing no longer on the scale of transactions and the number of users, but on the quality of assets and compliance with the platform. The consistent pace of front exchanges such as François, Coinbase and OkX presages the beginning of a “dehydration” cycle of dry foams。
