- Jin urges exchanges to conduct thorough investigations before token listings.
- Claims high-FDV altcoins at elevated prices prevent sustained BTC/ETH rallies.
- The analyst provides a five-point market analysis explaining the bearish positioning rationale.
Garrett Jin has called for cryptocurrency exchanges to prioritize investor protection over short-term revenue following controversy surrounding his identity as a Hyperliquid whale. Jin stated exchanges should conduct rigorous investigations before listing tokens rather than sacrificing long-term industry health.
“If exchanges acted responsibly, they would conduct strict investigations before listing tokens,” Jin posted on X. He argued that elevated high fully-diluted valuation altcoin prices make sustained Bitcoin and Ethereum bull markets difficult to achieve.
The comments follow on-chain investigator Eye’s analysis, identifying Jin as the whale holding over 100,000 BTC who sold more than $4.23 billion in Bitcoin for Ethereum. The entity also placed a $735 million BTC short order on the Hyperliquid platform.
Market analysis explains a bearish strategy
Jin provided a five-point analysis justifying his bearish positioning. The recent U.S. equity rally has been driven by leveraged funds and is now undergoing deleveraging processes, according to his assessment.
AI-related meme stocks that received heavy promotion declined ahead of broader market movements last week. Jin noted U.S. private credit has begun experiencing defaults, with private debt funds continuing downward trajectories.
Artificial intelligence development faces short-term constraints from power supply limitations. Jin stated AI investment funding has shifted from cash-flow-based models to debt-based approaches, with Oracle serving as the dividing line between these methods.
“While we cannot precisely predict the peak or timing, the risk-reward of going long is no longer favorable,” Jin explained. He further stated, “The fund isn’t mine — it’s my clients’. We run nodes and provide in-house insights for them,” in response to Binance founder CZ’s request for verification.
Industry maturity requires traditional finance lessons
Jin urged cryptocurrency investors to adopt traditional finance analysis methods rather than relying exclusively on narratives and emotional decision-making. He referenced the 1011 market crash as an example of damage caused to the industry through immature practices.
“If the industry does not improve, such events will happen again. And if we, as investors, remain immature, we will continue to suffer asset losses,” Jin warned. The statement advocates for more sophisticated risk assessment frameworks within cryptocurrency markets.
His call for exchange responsibility comes as the industry faces increased regulatory scrutiny globally. Proper due diligence on token listings could reduce investor exposure to fraudulent projects while building trust in cryptocurrency platforms.
Related: https://coinedition.com/xrp-2-65-resistance-2-85-target-21-ema/
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