abistola
@abistola
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LI XI, partner of LD Capital, also said in July, "The portfolios that LD Capital has launched this year are all profitable on paper, but they are all Paper Value, with 0 unlocking. Don't say VCs make money anymore. The money is all earned by project parties and exchanges. Except for the VCs who are organizing the game, most VCs are big leeks who take over. The primary market in this cycle is already hellish."
Not only will the lock-up conditions be modified, some project parties will also modify the cost price of VC investment tokens, forcibly increasing the cost; some project parties will repurchase the previous quota midway. If they exit according to the latest round of valuation, it is conscientious, and some will require a discounted repurchase... 0 reply
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First, we can interpret this concept from the subprime mortgage crisis in the United States in 2008. "In the early 21st century, the US real estate market continued to rise, and borrowers with poor credit could also use subprime loans to obtain loans. When US house prices began to fall, a large number of subprime loans defaulted. This caused many financial institutions to see a sharp decline in capital, and Lehman Brothers went bankrupt." In fact, the liquidation of the currency circle is very similar to traditional finance. Users mortgage BGB to borrow other coins. Since the LTV is around 75%, once a large investor dumps the market and the price reaches the liquidation line, all loan orders will be liquidated, the market liquidity will be drained, and the token will flash crash and fall sharply. 0 reply
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