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He Yi: Projects with high valuations cannot only be judged by market value, the era of haircuts may be coming to an end

Binance co-founder He Yi wrote on Binance Square: "2017 was the era of ICOs, where you could make money as long as you got a share. In 2021, with the rise of DeFi, as long as you move fast, you can make money by participating in yield farming. Buying new instead of old is also a typical feature of this period. However, now IEOs are generally considered to have legal risks in most countries, so they can only be airdropped and priced by the market. This means that if there is a large circulation, the opening price of the project will be relatively stable, such as BB and LISTA, but compared to 2021, the rise is still too fast, lacking sufficient washing-out process.

In 2024, the rise will be driven by BTC ETFs. The cooperation between the king-level projects and the hair-raising studios will create beautiful data. On the one hand, the project party can raise more money from VC. On the other hand, the project party with money and users is confident, with millions of users on the chain. It doesn't matter if it is not listed on a certain platform, as there are plenty of CEXs to choose from, and if not, there are DEXs and native DEXs on their own chains. The trading platform does not have the pricing power, so for projects with high valuations, users need to look at the fundamentals and not just market capitalization.

Nowadays, the self-inflicted war between hair-raising studios and L2 projects has turned into a farce, and the era of hair-raising may be coming to an end. As an ordinary investor, using the ICOs of 2017, the IEOs and yield farming of 2021, and even the hair-raising strategies of 2023 may not be suitable for today's market."


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