TechFlow news: In response to concerns over Binance's recent rapid pace of token listings and the large-scale introduction of high-market-cap VC-backed projects, which has strained market liquidity, Binance co-founder He Yi stated that the crypto industry is a free market where liquidity and trading volume are shared across platforms. Even if Binance does not list new projects, these projects will still exist and capital will naturally spread across the entire industry.
Besides VC-backed project token unlocks, meme coins, on-chain "pump-and-dump" schemes, farming activities, and financial pyramid schemes also draw away capital. Following ETF approvals, traditional financial markets will further divert funds that would otherwise flow directly into crypto.
She noted that some VC investments indeed contribute to inflated valuations, but most VCs have seven-year lock-up periods, with unlocking typically beginning one year after TGE (Token Generation Event), meaning many VCs are now collapsing. Projects receiving substantial funding have a better chance of surviving through bubble cycles, although token prices and governance models are ultimately determined by the project teams and require in-depth analysis.
He Yi also highlighted that the rise of DeFi has enhanced market liquidity and freedom, making it harder for CEXs to unilaterally set rules—this, she said, is precisely the appeal of a free crypto market. She reminded users to always conduct their own research (DYOR).
