Research: As the influence of Alameda continues to exist, more and more encryption startups delay the token issuance plan

It is reported that although the prices of BTC and ETH have risen, some projects are delaying their token issuance plans due to lack of liquidity. According to the data of CoinMarketCap, the number of new currency applications decreased throughout 2022, from 10264 in the first quarter to 6350 in the fourth quarter. With the collapse of the cryptocurrency exchange FTX and Alameda Research, this decline accelerated at the end of the year. Before bankruptcy, Alameda was one of the largest market makers, providing billions of dollars of liquidity for large and small tokens. So far this number is only 3000 applications.

Interpretation of this information:

A decline in new currency applications is observed due to the lack of liquidity caused by the delayed token issuance plans of some projects, despite the rise in prices of Bitcoin (BTC) and Ethereum (ETH). CoinMarketCap data shows a decrease in new currency applications from the first to the fourth quarter of 2022, with the number falling from 10,264 to 6,350. The report reveals that the decline has accelerated towards the end of the year with the bankruptcy of FTX and Alameda Research. Before bankruptcy, Alameda was a significant market maker that provided billions of dollars in liquidity for large and small tokens. Currently, the number of new currency applications stands at 3,000.

The rise of Bitcoin and Ethereum has created excitement with an increase in demand for cryptocurrency. However, the limited liquidity in the market has made some projects unable to launch their new tokens. The decline in new currency applications may represent the inability of some projects to bear the high cost of liquidity. The market may see additional delays in the launch of new tokens because these projects are cautious in the volatile market.

The issues with Alameda Research and FTX have compounded the problem of limited liquidity. Alameda was a vital source of liquidities in the market. The company ensured the completion of trades by matching buyers and sellers with liquidity. After its bankruptcy, several new trading platforms came into existence, but none could replace the liquidity that was provided before. The result of this is that there is not enough liquidity to take on new token launches.

In conclusion, the report draws attention to the decline in new currency applications, low liquidity in the market, and the fall of Alameda Research and FTX. Due to low liquidity in the market, some projects are delaying their token issuance. There is a high possibility that the situation may continue as some projects remain cautious of the uncertain market.