Binance's research report "Thoughts on High Valuation, Low Circulation" is well written, the data is very detailed, the thinking is very in-depth, and the format looks very comfortable. The following is my personal interpretation of the report. The main core points are as follows:

1. The structure of low circulation and high valuation has significantly inhibited the room for currency price increases. There will be 155 billion US dollars in tokens unlocked between 2024/2030, which will bring huge selling pressure.

2. Project parties need to make more rational decisions about the token economics design of the project to ensure long-term interests; VC is still important to the industry, but a more reasonable cooperation model is needed.

What I find more interesting is the thinking about this phenomenon, first of all for investors (retail investors):

1. Pay more attention to token economics and analyze possible selling pressure

2. Pay more attention to the product itself, such as whether the white paper is rigorous, whether the mainnet is online, and observing indicators such as daily activity.

3. Pay attention to the founder’s background and whether the community is active

For the project party (big cut):

1. Low circulation and high valuation may contribute to the initial price increase in the early stage, but in the long run, diamond hands (tied leek) may be under tremendous pressure due to the decline in currency prices, and the ecology will be in a state of collapse. Therefore, more careful attention is needed. Consider distribution of token economics and consider appropriate burning mechanisms

2. Products are the core of attracting users. Good products that fit the market are the intrinsic value of tokens in the long run.