Conflux (CFX)

Recently, after discussions with industry insiders, some doomed‑level projects that have just begun unlocking or are still locked have been falling continuously, with FDV market cap dropping to only a few tens of millions of dollars, while the project's treasury (composed of USD, stablecoins, Bitcoin, Ethereum, etc.) is larger than the token’s total circulating market cap, resulting in an inverted phenomenon:

The source of these treasuries is mostly from earlier luxury financing rounds and high valuations, or from aggressively dumping during the TGE when the project secured listings on top CEXs, using mouse‑farm dumping and market‑maker futures short‑selling to cash out.

At this point, a treasury of several tens of millions or even over a hundred million dollars becomes a tool for core team members to battle each other, seek profit‑shifting, line their pockets, and essentially drain the project… Slightly better‑off projects use the remaining funds to restart efforts in AI, but the equity of new projects is not proportionally allocated to existing investors… allowing the token to free‑fall.

This is a classic principal‑agent problem. For crypto VCs and core token holders, it is a very painful issue: on one hand they lack evidence, and on the other the board‑management governance structure of crypto projects is also effectively non‑existent, leaving them to watch the project shrink day by day and die chronically…

Seeing the overall moral decline and internal decay of the industry weighs heavily on my heart. Although throughout the past cycle I have repeatedly called out project factories, exchanges, KOLs and market makers to stop collective wrongdoing, it has inevitably led to the situation we see today…

But even now, we can still do something: unite to urge those inactive project teams/founders to disclose the use and destination of funds, and pursue litigation and restitution according to investment contracts.

Code is law but broken by humanity.