TechFlow news, on October 11, Yi Lihua, founder of LD Capital, posted on social media stating that the overall liquidation reached tens of billions of U.S. dollars, primarily affecting market makers and active traders. The damage to the market far exceeds imagination, as other crypto investors are mostly inactive holders who do not trade frequently. Especially for altcoins that were wiped out instantly, it will take a long time to restore investor confidence and liquidity. He strongly suggested that exchanges allocate part of their profits to establish a liquidity stabilization fund to prevent extreme situations where illiquidity leads to zero valuation. The Federal Reserve has market regulation functions; similarly, exchanges that earn billions annually should also have the capability and responsibility to establish such mechanisms. Otherwise, if the market suffers devastating damage, it won't only hurt exchange users but also the market and the exchanges themselves.
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