Binance Life vs. EOS Life: In the era of crypto “flying blindly”, who should put the last brake on us?

In the current unregulated crypto landscape, the industry is witnessing a surge in speculative activities and quick-money schemes, exemplified by platforms like Binance Life and EOS Life. This article raises critical concerns about the role and responsibility of exchanges in fostering sustainable growth.

High Project Failure Rates: Data reveals that 90% of projects launched on platforms like Alpha fail, highlighting the risks in an ecosystem where exchanges dominate liquidity and influence.
Risks of Derivative Trading: Aggressive subsidies and airdrops by platforms like Hyperliquid and Aster are attracting inexperienced retail investors into high-leverage, zero-sum derivative trading, potentially leading to widespread losses and gambling addiction.
Call for Self-Regulation and Long-Term Vision: The author urges industry leaders to prioritize long-term value over short-term wealth myths, establish healthier competition mechanisms, and exercise restraint in innovation to support the emergence of truly transformative companies.

Ultimately, the article advocates for greater responsibility among crypto entrepreneurs to guide the industry toward sustainable breakthroughs, rather than perpetuating cycles of speculation.

By Jocy , Founding Partner of IOSG

Binance Life and Oui Life are all over Twitter. Countless wealth-making myths have made community users passionate, and the industry has entered a quick money mode again.

Behind Alpha's success lies the fact that only 32 of the 326 projects launched actually achieved spot status. This means that 90% of the projects launched on Alpha that year ultimately became platform fuel. In unregulated industries, exchanges hold strong influence and hold a high degree of dominance, so project failures don't necessarily stem from exchanges. However, if platforms in unregulated industries fail to better regulate themselves, it can be a drastic measure for the entire industry. Liquidity success and failure can occur in an instant, creating myths of wealth creation that quickly appear and fall.

Hyperliquid has achieved tremendous success leveraging the concept of on-chain Binance, and Aster has captured market share on PerpDex by recreating trading volume. It seems the entire industry is moving towards decentralization and greater promise. However, in reality, futures and derivatives have long been the most profitable tools for exchanges. Countless exchanges have employed various methods to get users on their platforms to use their Perp products. However, futures and derivatives are inherently a zero-sum game, where retail investors can leverage tens to hundreds of times their profits and losses. Consequently, the aggressive subsidies offered by powerhouses like Hyperliquid and Aster have encouraged users who previously had no experience with derivatives and futures to get started. By leveraging airdrops, a large number of people who have never traded leveraged have rushed into the market. Even if the final user conversion rate is only 10%, these users are likely to become addicted to futures gambling in the next six months. PerpDex is a promising platform, but excessive incentives and intervention to encourage more people to become futures gamblers have lost their original purpose and are prone to backfire in the future.

What values should be prioritized in the crypto industry, especially in the competition and competition among exchanges? Many exchanges control liquidity and platform traffic, so creating meme-driven wealth creation myths can better position them for leadership and attract countless people. Competition is inherently fierce, but in an industry lacking regulation, should industry leaders seriously rethink the kind of racing mechanism they should establish for the industry and the direction of retail investment? As crypto practitioners, we've witnessed the rise and fall of bubbles over the past few cycles, as well as the maturity of DeFi, stablecoins, and infrastructure. If leading players can find ways to capitalize on long-term value propositions and do more difficult, yet correct, and long-term things, they will be remembered by countless industry practitioners years from now as driving forces and individuals.

During the Trump administration, the crypto industry has seen countless positive developments and minimal regulation. However, this unregulated era demands a greater sense of responsibility from top entrepreneurs. They should help the industry achieve further breakthroughs during this cycle, attract more powerful entrepreneurs, and enable the emergence of companies like ByteDance and Pinduoduo. I urge exchanges to exercise greater restraint in their internal project innovation and traffic liquidity, and to ask themselves more frequently: Will the value of what they are doing still be relevant in the industry three to five years from now? The best entrepreneurs often focus on more than just the present; they work together to create a broader future for the crypto industry.

Tips: Of course, it’s hard for many people to refuse such an overwhelming opportunity to make money, and countless myths of getting rich quickly make everyone yearn for it. But please remember the three principles of investment: maintain your immortality, try to participate as little as possible and lose as little money as possible among countless opportunities, and make big bets and make big money in your own professional field or direction of expertise (inspired by a conversation with a wizard in Singapore)