Garrett Jin: The first exchange to establish a stability fund will attract capital inflows and drive industry development

BlockBeats News, October 13th, Whale Garrett Jin, who previously sold over $4.23 billion worth of BTC in a high-profile manner and switched to ETH, posted, "The deeper issue in the crypto industry is that exchanges offer high leverage for assets lacking intrinsic value to meet user demand and boost profits. Such high leverage used to only exist in the forex market, where the underlying assets have value support, low volatility, and liquidity provided by banks.

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

The sharp drop on October 11th once again proved that the market greatly needs liquidity support during extreme volatility. Exchanges that take the lead in establishing a stable fund will not only attract capital inflows but also drive the entire industry forward."