Shanzhai has always been a concern for everyone, but has there been no progress due to insufficient liquidity?

It seems so; it's not that the market doesn't need a Shanzhai season, but rather that the current liquidity does not support the outbreak of a Shanzhai season, especially during times of monetary tightening. However, when monetary easing occurs, I believe a Shanzhai season will still appear.

The US stock market is a good example. Compared to the US stock market, the cryptocurrency market is too young, so young that this is the first time in history that the halving cycle of Bitcoin overlaps with the Federal Reserve's monetary tightening, leading to insufficient liquidity!

But when the easing cycle arrives, all problems will be resolved. This cycle is monetary policy; during easing, liquidity is better, risk appetite for investment increases, and investors are more willing to invest in high-growth, high-risk assets. During monetary tightening, more investments are made in defensive assets.

What is the current situation? Many projects are controlled by over 99%, yet they paint a rosy picture without liquidity to support it, and the retail investors do not believe in any stories.

As discussed before, when the market shifts towards having certain applications, it indicates that the project can at least guarantee its own earnings. Having earnings ensures cash flow and funds to sustain the team.

The projects that are least capable of generating their own cash flow have teams that are more focused on how to offload their tokens because they need to support themselves; they need money for food. Without their own earnings, the only way to liquidate is to cut the retail investors!

Also, for teams without money, can you expect them to have funds to pump the market? When funds come in, they are eager to sell immediately. Gradually, these will all be eliminated.

Ultimately, when you look at Shanzhai, there are three key points:

1. Does the product or service create value for users?

2. Can it generate revenue and growth?

3. Can the token capture this revenue?

Perhaps some may not know which direction to research; you can look at projects like Aave, Uniswap, Suihi, and Compound, which can create value for their own protocols.