Where did the funds go? Why don’t exchanges list your coins?

Author: shaqima; Source: Author Twitter | @Daji_357

There are many different opinions on this topic recently. I have comprehensively thought about it from the perspective of the flow of the entire capital market, exchanges, and VC business models.

Here I share it in a simple and easy-to-understand way with examples.

History tells us that the current situation is not unsolvable.

The content is divided into several categories:

1. The current market capital distribution and population distribution

2. VC model coins and the operating logic of exchanges

3. Why does the exchange not like your B?

4. How to break the game in the future? Let's look at the lessons learned

To know why the exchange does not like your B, you must first understand the exchange's operating model and what role it plays in the crypto ecosystem (capital market).

1.Market capital distribution and population distribution

From the big categories, the capital market can be mainly divided into primary and secondary. If it is subdivided, there will be various ecosystems, sectors and different forms of capital products (NFT, Token, inscriptions, runes...).

From the crowd, it can be divided into two categories as a whole, Chinese and overseas.

Since the policy was implemented, Chinese people have very few options for exchanges. Therefore, for Chinese people, the exchange is not begging you to come, but the attitude is that if you don’t come, you have nowhere to go. Moreover, with the emergence of the wealth-creating effect, people will come.

Of course, there is not only one exchange, but each exchange has found its own unique core competitiveness in the market.

Some choose to focus on security, some focus on building and promoting a new ecosystem, and some choose to survive first with some secondary assets that the head exchanges don’t like, and some even go to compete for the cake of the primary market….

Therefore, apart from the form of assets, from the perspective of the exchange, B can be classified into:

C: Ordinary assets in the primary market (uncertain risks, need to be investigated, understood and then decided)

B: Good assets in the primary market (with potential, but still with risks, analyze its benefits and then make decisions)

A: Excellent assets in the primary market (with excellent endorsement background, low risk, and certain returns)

Therefore, Class A assets are what everyone is scrambling for, Class B assets are selected by the head exchanges, and Class C assets are basically not looked at, just play in the primary market

Use an example to summarize briefly

The ABC here are like examinees, and the exchange is divided into top undergraduates, undergraduates, and junior colleges.

Excellent examinees can bring benefits to the school, so naturally everyone likes them.

If you are not excellent, but you have connections and can bring value to the school, it is the same.

We can also accept those with average grades who can afford the money. After all, the school also needs to make money. But the number of places is limited, but don't be discouraged, there are other schools that welcome you more than us.

For those who are poor in learning, even if you pay, there is a hidden danger of disrupting the school's atmosphere. If you discredit the school, it will not be worth the loss. You might as well fend for yourself, or go to a junior college. There will always be schools that are not afraid of risks and want to make a little money from you.

The threshold is formed. So, the project party also has to take an exam.

Of course, these are on the surface. What are the places where the dark box is operated?

If you are an "overseas identity", even if your grades and strength are average, if you come to me, you can make me famous in the overseas market. Naturally, it is also welcome.

So, in the current capital market, projects dominated by Chinese people must rely on strength to win. If you don't want to compete, it depends on your background and connections. After all, the Chinese market is saturated. I am not afraid that you will not choose me. After all, if you don't choose me, you have nowhere to go.

For exchanges, the overseas market is the main goal to increase revenue.

After accepting overseas projects with high popularity, they can bring in overseas users. Once they can stay, they can continue to expand their own income.

At this point, the crowd and funds are clear at a glance.

If we talk more deeply, when a new narrative appears, first look at the proportion of the crowd.

If it is mainly overseas users, the privileged channel will be given first, and the threshold can be lowered for you. It's okay not to make money, as long as you can bring people. I can make money from them in the future.

If it is mainly domestic users, it depends on your ability and strength.

The narrative is novel enough, and we are not old-fashioned people. We should praise it when it should be praised, but the conditions are still indispensable. When your ecosystem is large enough and the profits are considerable enough, we can talk about the "knife".

Therefore, under the condition of holding on without fear, it is better to have nothing than to have something bad.

After talking about the external environment, let's look at the internal structure.

Second,VC model coins and the operating logic of exchanges

In order to make it easy to understand, let's not talk about those who are born with a golden key. Let's start with ordinary projects.

After a narrative is constructed, it needs to survive in the market, that is, traffic. When it is not popular at the beginning, it needs data to support its "dignity", so in the period of latent dragon, everyone's starting line is the same.

With a little achievement, there will naturally be powerful people who will throw an olive branch to it. If the conditions are not strong enough, it must be difficult to fight alone. You need to hold together for warmth.

At this time, your basic traffic will begin to expand through these olive branches.

When the traffic expands to an ideal stage, you will be qualified to go to a prestigious school.

Then you need to talk about returns. After all, who will give you nonsense without money?

From the beginning, 100% of your own money was divided into olive branches and famous schools. At this time, you touch your trouser pockets and find that it is broken. It is not enough to share with the brothers who helped me support the scene when I was not famous!

What to do, witch is a good thing.

"Recently, the so-called witch and other incidents have occurred frequently. It is really a joke that these can be tolerated in the encryption track."

So, in the above logic.

The project party plays the role of technical conception and implementation. (Of course, there are also people who make money purely by conceiving, but that was in ancient times)

VC plays the role of Wang Po. They must help you build momentum, give you money when you are short of money, and help you build volume through personal connections.

Exchanges play the role of traffic amplifiers (liquidity).

Project parties earn their own entrepreneurial income through technology and ideas. VC earns its own low-priced chips through its personal connections and resources. Exchanges exchange low-priced chips through their own traffic.

After allocating the chips, the next step is how to sell them better. (I won’t mention market makers too much here, the logic is the same.)

After talking about VC, let’s look at exchanges:

After all, exchanges are the earliest entrepreneurs. They have built a convenient trading environment through technology, without the complexity of the primary market, and at the same time, everyone feels that there is a certain degree of risk reduction here.

Once the technology is done, someone needs to come. In the initial survival stage, you need various project parties to bring people and do subsidy activities to attract people to come and stay, so that your venue will become popular.

One day, you find that everyone in the village is playing in your venue, and there are no other venues within a radius of hundreds of miles. Naturally, you will not promote it too hard.

The next thing you need to think about is how to get tourists from farther away to come to your place to play.

So in essence, everyone is circling their own pool based on the entire market. When the wings are full, they will naturally cherish their feathers. In other words, how can the vegetables you grow be collected by others?

Three,  Why does the exchange not like your B?

No matter how you look at your own children, this view often needs to be abandoned.

Many times, most projects have met the requirements of traffic, but have not met the requirements of income.

The old saying goes that the teacher has a name. The exchange needs to have a good pledge to accept you.

We examine a project from the perspective of the exchange:

1. Is the traffic large enough? If your traffic is large enough, it is the kind I want. It is easy to talk to.

If it is just a small amount of traffic, then look at other options.

2. Can you bring benefits? The benefits of trading volume are the last choice for the exchange, and it is also the bottom line for those projects with large traffic.

Direct benefits are the most real. If you can't see the money, why should the exchange provide you with traffic in exchange for liquidity? You take the money and leave, and the exchange is in a mess.

So, the chips are given, or the money is given, this is the real thing.

"Mr. Huang, how can we suppress bandits without money?"

So, no matter how big the project is, the exchange can obviously use free support to increase your dream. Why should we use our own real money to support your dream?

Everything, in the final analysis, is still about interests. The rules on the surface are always used to play tricks on people, and the rules in secret are used to get things done.

You think that the child you chose has met those so-called requirements, but in fact, it is just a dream. Moreover, more often, we should evaluate the advantages of the project from an objective perspective. It is not that we think that all foreigners are foreigners just because we see a foreigner. This is self-deception.

Fourth, How to break the situation in the future? Let's look at the lessons of the past

The market is the product of buying and selling behavior, and the exchange will always simplify the path of such buying and selling behavior, so as to get a share of the pie. When the crowd is large enough, it will naturally make more money.

But the market is never an infinitely large cake, so it is impossible for the exchange to monopolize the entire market. This is the norm.

When things develop to a certain stage, they will always face the challenges of the current stage.

I don't care what the reason is for Binance's current style, but it is true that Binance has encountered a bottleneck.

Exchanges cannot have all three options of innovation, profit, and security.

At the current height, under the difficult predicament, even Binance cannot completely monopolize all groups in the market.

On the one hand, there is risk, on the other hand, there is an upward interest game, and on the other hand, there is a downward competition for traffic. There must be gains and losses.

As of now, compliance and security may be Binance's first choice, so it has lost vitality and innovation.

The recent emerging MEME focuses on fairness and the selling point of being as close to decentralization as possible, but it also means one thing, kicking away many roles in the original ecological food chain.

This chain naturally can no longer operate under the previous model. It means innovation.

This is not the first time that this has happened. BYAC in 2021 is an emerging product of NFT. The exchange plays more of a first-half hype and a second-half follow-up in this carnival.

Therefore, in this emerging market, many other trading scenarios such as opensea have also emerged.

The laws of the market cannot be completely controlled by a single individual

Therefore, whether it is pump or unisat at the current stage, the emergence of these platforms also plays a more important role in the new link.

In the future, more emerging assets will bypass these so-called leading platforms to shine. When there is enough traffic, token assets will be derived and return to these platforms to jointly promote the entire ecological market.

The current Binance is no longer a small boat with strong maneuverability. Since the giant ship must be stable, it will not deprive the small boat of its existence value.

Therefore, at the current stage, whether it is MEME or other emerging things, it is an opportunity for more small boats.

More giants will emerge with this opportunity. In the final analysis, even if the MEME track deprives certain roles of conventional VC model tokens in the future, it cannot become the object of choice for exchanges favored by these VCs.

It does not mean that there will be no MEME exchanges of its own.

Everyone has different standards for evaluating excellence. In a market with thousands of people and thousands of faces, when the demand is huge enough, more opportunities will be derived.

NFT or Pump, Brc20, Rune, will not grow after being rejected by a Binance

Under the huge torrent of history, exchanges are just one of the passers-by. Binance has completed the current feat within a few years, which also means: there will be successors.

The current problem is a dilemma, but it is also an opportunity for exchanges and teams with ideas.

The fall of any giant ship is a heavy blow to the industry, and everyone needs to pay for it. There is no need to destroy it. It can only be said that with the upgrade and development, many people are no longer its customers.

But it does not mean that this market no longer exists

For the withdrawal and security of large funds, Binance still has core competitiveness.

When it cannot carry everyone's expectations of "promoting the industry", other rising stars will naturally emerge.

The catfish effect can sometimes stimulate the development of the industry after all.

From an ecological perspective, Binance cannot stop the operation of the cycle. From the perspective of individual investors, maintaining the same trading logic as the exchange can still earn ideal returns.

Look forward to the emergence of a breakthrough method that will catch your eye.