Viewing the logic of collateralized borrowing from a different perspective, it essentially means selling the tokens in hand to the exchange in the form of OTC.



For tokens with moderate liquidity, this can be a great exit window—especially for those small tokens with thin trading volume and difficulty escaping market liquidity.

Interestingly, a leading exchange's loan collateral list supports a wide variety of tokens. A quick browse revealed some projects—market cap only $15 million, FDV reaching $45 million, daily trading volume around $2 million, with liquidity being virtually nonexistent.

At this point, if the project team is still holding large amounts of tokens, the situation can become a bit awkward. Collateralized borrowing may instead serve as a good exit strategy.
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FrogInTheWellvip
· 12-16 07:11
Amazing, the exchange's move is just an updated way to legally harvest retail investors.
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ForkLibertarianvip
· 12-13 11:57
Amazing, isn't this just the project's way of secretly farming users? Reasonable, legal, and elegant.
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EternalMinervip
· 12-13 11:54
I've seen through this trick a long time ago. To put it simply, it's just another way the exchange is scamming users.
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NotGonnaMakeItvip
· 12-13 11:35
Haha, this is a typical "excuse" for cashing out. It sounds good as a liquidity solution, but in reality, it's just a disguised way to delay selling pressure.
View OriginalReply0
FOMOSapienvip
· 12-13 11:30
Wow, isn't this just a disguised way of cutting leeks? The project team really has some tricks to dump coins with this move.
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