Garrett Jin: The trading platform that first establishes a stable fund will attract capital inflow and promote industry development

ChainCatcher message, the prominent whale Garrett Jin, who previously sold over $4.23 billion in BTC to switch to ETH, stated that the deeper issue in the crypto industry is: trading platforms provide high leverage on assets that lack intrinsic value to meet user demand and increase profits. This high leverage previously only existed in the forex market, where the underlying assets have value support, lower volatility, and liquidity provided by banks.

If trading platforms continue to offer extremely high leverage, they should at least establish a mechanism similar to a stabilization fund, like in the U.S. stock market, to provide liquidity support during crises. Only in this way can trust be rebuilt, capital be attracted back, and promote healthy market development.

The crash on October 11 again proved that, under extreme volatility, the market is in dire need of liquidity support. Trading platforms that take the lead in establishing stabilization funds will not only attract capital inflow but also drive the entire industry forward.