Garrett Jin: Trading platforms that take the lead in establishing stable funds will attract capital inflows and drive industry development
BlockBeats News, October 13, the whale Garrett Jin, who previously made headlines by selling over $4.23 billions worth of BTC to switch positions to ETH, posted that "A deeper issue in the crypto industry is that trading platforms offer high leverage on assets lacking intrinsic value to meet user demand and increase profits. Such high leverage previously only existed in the forex market, where underlying assets have value support, lower volatility, and liquidity is provided by banks."
If trading platforms continue to offer extremely high leverage, they should at least establish mechanisms similar to stabilization funds, as in the US stock market, to provide liquidity support during crises. Only in this way can trust be rebuilt, capital be attracted to return, and healthy market development be promoted.
The crash on October 11 once again proved that under extreme volatility, the market is in urgent need of liquidity support. Trading platforms that take the lead in establishing stabilization funds will not only attract capital inflows but also drive the entire industry forward."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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