BlockBeats News, October 11th, Founder of Liquid Capital (formerly LD Capital) Li Hua released a statement saying that the overall market saw billions of dollars in liquidation, with the main affected groups being liquidity providers and active traders, causing much more damage to the market than imagined. Especially for meme coins that were liquidated in a single transaction, it will take a long time to restore investment confidence and liquidity. It is strongly recommended that trading platforms allocate a portion of their profits to establish a liquidity protection fund to prevent extreme situations where liquidity dries up and assets go to zero. Just as the Federal Reserve has a market stabilization function, we believe that platforms making tens of billions of dollars in annual profits have the ability and responsibility to establish such a mechanism. Otherwise, the market will suffer catastrophic damage, affecting not only platform users but also the market and the platforms themselves.
