Li Yihua identifies four causes of the crypto primary market's bear slump, calls on project builders and leading centralized exchanges (CEX) to take joint action to reverse the downturn.

Yilihua, founder of Liquid Capital, published an article discussing the current state of the crypto primary market. He cited four main reasons for the crypto primary market’s decline: First, the narrative has collapsed—from whitepapers to institutional endorsements to inflated total value locked (TVL), the market has largely stopped buying into these. Second, supply imbalance: Tens of thousands of projects now exist, making it extremely difficult for high-quality projects to stand out. Third, the "1+3" token unlock mechanism, which essentially targets venture capital firms (VCs), allowing projects, market makers (MMs), and exchanges to exit first. Fourth, listing costs: Why do primary projects require high valuations and large financing rounds? The core reason is that listing on leading centralized exchanges (CEXs) costs an average of millions of U.S. dollars. Yilihua argues that the industry’s leading players should focus on genuine building. For example, Binance should improve its token listing screening process—under the current model, even Vitalik Buterin’s Ethereum (ETH) would not have been listed on Binance. Second, the "1+3" unlock mechanism should be completely abolished. VCs bear the most risk and should not be burdened with the worst unlock terms; project success or failure is not determined by VCs at all. Finally, crypto projects need to return to genuine revenue generation and buybacks. The sustained prosperity of the U.S. stock market over the years hinges on earnings growth and rewarding shareholder returns, which is what industry leaders should do, so that secondary market investors can truly identify high-quality projects.