Arthur Hayes, the co-founder of BitMex, has highlighted the need to open token generation events (TGEs) at lower prices to avert market instability.
Impact of Lower Token Prices on the Market
Hayes cited Berachain (BERA) as an example, noting its recent 13% drop in the last 24 hours. High initial valuations can lead to rapid sell-offs and loss of investor confidence.
Short-term Gains vs. Long-term Risks
When a crypto project inflates its valuations immediately after a TGE, it can impair investor confidence. High ICO valuations without progress typically hint at a lack of transparency or fraudulent intent.
Conclusions and Recommendations
It is noted that founders and venture capitalists often prioritize personal gain over project stability. A focus on project development, rather than price manipulation, is recommended.
Arthur Hayes emphasizes the importance of lowering initial token prices to boost long-term trust and sustainable development of crypto projects.
