Market Faces Severe Losses Amid Liquidation Crisis

According to BlockBeats, Liquid Capital founder Yi Lihua has highlighted the significant impact of recent market liquidations, amounting to hundreds of billions of dollars. The primary affected groups are market makers and active traders, with the damage to the market exceeding expectations. Yi emphasized the need for extended recovery of investment confidence and liquidity, particularly for altcoins that have experienced drastic devaluation. Yi strongly recommends that trading platforms allocate a portion of their profits to establish liquidity regulation funds to prevent liquidity exhaustion in extreme situations. He noted that the Federal Reserve has market regulation capabilities, and platforms with annual profits in the billions of dollars have both the capacity and responsibility to implement such mechanisms. Without these measures, the market could suffer devastating damage, affecting not only platform users but also the market and the trading platforms themselves.