Conflicts between exchanges and VC coins: the failure of industry pricing mechanisms and value discovery functions.

Author: Haotian; Source: X, @tmel0211

Finally, a project team has risen up!

Zerebro co-founder @omedia_jyu publicly revealed some grievances between the exchanges regarding listing and market makers: @binance wants $1 million in cash; @krakenfx wants $100,000 to $200,000 plus tokens; @Bybit_Official wants $250,000 plus tokens; @wintermute_t directly asked for 10% of the supply.

These numbers are unusual, and to me, they resemble a heavy bomb being dropped into the crypto industry, brutally tearing apart the truth behind the so-called “listing is the peak” in the coin circle.

Of course, Zerebro itself is not a white lotus project either. Jeffy had a “fake death” drama. To be honest, this leek has also been cut for 20,000 U.

However, I still feel that I should support him this time for speaking out.

Because he tore apart the longstanding “unspoken” understanding between the VC project parties, exchanges, and market makers.

Why has it only erupted now? Everyone is well aware of the listing rules of this exchange and the operational tactics of some market makers; they simply exist in various “forms” of evolution. Why is it exactly now?

Because the 1011 black swan thunder can be regarded as a “subprime crisis” in the crypto world led by exchanges, and the once-zero coin price also reveals a harsh reality: the liquidity of many altcoins has long been exhausted.

So, essentially this is the breaking point where the era of VC coins has died, along with the great collapse of some altcoin projects.

Moreover, this time the exchange got carried away and suffered from an emotional backlash after reaching the peak of success, giving a chance for many VC coin project teams to rise up and shout.

In fact, it's no wonder that when VC coins are launched with valuations in the billions yet lack corresponding liquidity and user support, every link in the利益链条 of project parties, exchanges, and market makers is squeezing each other.

Exchanges want to maintain the proud image of the “Chosen One”, market makers want to obtain excess profits, VCs want to exit and realize returns, and ultimately all costs are passed on to retail investors.

As the intermediary, the project party has to bear the pressure from VCs (high valuations, quick listings), pay exorbitant fees to exchanges and market makers, and face the doubts of retail investors and the plummeting coin prices after going live.

Under this pressure of multiple contradictions, someone finally couldn't take it anymore.

So, what is the deeper issue?

In fact, it is very simple. It's not just about whether the listing fee is expensive or not. If the market is healthy, VC coins can afford it. It's also not just about high FDV causing pain to the hearts of many retail investors. Retail investors have been seeking a way out amidst huge “token dumps” for several cycles.

The key issue is the failure of the entire industry's pricing mechanism and value discovery function.

When listing coins no longer considers project quality, user demand, or technological innovation, but instead focuses on “how much money is given” and “how many coins are locked,” the entire market becomes a purely financial game.

Moreover, exchanges are no longer content with “carefully selected projects”; instead, they are building their own platforms and mass-producing projects. Well, the exchanges' inner thoughts are, since VC coins are using exchanges as an exit channel, why not just flip the table and stop playing with VC coins?

I think this is the truth behind the conflict between the exchange and VC coins.

The pessimistic view is that I don't think this leak will change anything this time. Because in the eyes of many, it's just a tragic play of dogs biting dogs, and there won't be any immediate changes.

But but but! At least we've broken the silence. I believe that more and more projects on the side of justice will realize that they might be able to stand up and raise a voice against this “dirty game” and the “twisted rules of power”!