Today, a friend came to give feedback to Brother Da that his group's LP pool suffered a loss of 800U due to impermanent loss.
Brother Da has mentioned before that cryptocurrencies like ZKJ and KOGE, which have no volatility, require certain conditions, the most basic of which is a balanced buy and sell order in the market. This prerequisite condition is that the market makers should not crash the price, and retail investors do not hold much of the coins. So, Brother Da deduced that about 90-95% of coins like ZKJ and KOGE are concentrated in the hands of market makers, which allows for such high trading volume to maintain such a stable coin price.
Now, Binance ALPHA's point requirements are getting higher and higher, which has discouraged a large number of players, leading to decreasing trading volumes for ZKJ and KOGE. The market makers are getting anxious; if you all stop trading, who will take over? Originally, everyone could maintain a bit of dignity, but when core interests are involved, it’s better for the friend to die than for the poor monk.
Once the market makers start distributing coins, ZKJ and KOGE will no longer be able to maintain such stable prices, and those who have been trading a few thousand U per order are likely to start increasing their losses.