2026-01-19 15:32:04

ParaDEX failures are not isolated incidents but an inevitable result of market cycles. The explosive popularity of Hype and Lighter triggered a chain reaction—large amounts of capital rushing into these emerging platforms. But the truth is, a significant portion of these projects' TVL and trading volume come from the outflow of funds from other platforms, as profit-seeking Farmers look for high-yield opportunities. Even the currently most talked-about VAR is no exception. Capital flows to places with high popularity, which is not inherently problematic. However, when infrastructure, risk control, and liquidity are not fully established, this concentration effect can easily trigger risks. Once problems arise, the consequences can be quite shocking.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
7
Repost
Share

Comment

0/400

MetaverseVagabond

· 2h ago

It's the same story again, hot projects come and go. Funds band together for warmth, and in the end, someone always takes the fall. --- ParaDEX is like farmers' experimental field; most high yields are scams. --- This round, we must learn our lesson. If the infrastructure isn't solid, there's no need to boast so loudly. --- Is VAR like this now? It feels like the entire ecosystem is just playing hot potato. --- Honestly, it's still about risk control not keeping up. Money coming in too fast can be poison. --- Liquidity traps happen every time; farmers need to wake up. --- When a new platform explodes in popularity, it's a signal. Anyone still jumping in is just gambling. --- Building solid infrastructure takes time, but the market can't wait, and that's the tragedy.

View OriginalReply0

ContractBugHunter

· 2h ago

Another round, is this how funds follow the trend and gather? If the infrastructure isn't in place, they just bleed out, and a blow-up is inevitable. --- Farmers are really a bit crazy, rushing wherever the heat is high, just waiting to be harvested. --- Risk control isn't well established and yet they dare to attract so much capital? The problem isn't with ParaDEX, but with greedy project teams. --- To put it simply, the infrastructure hasn't kept up, but the hype arrived first—this is courting death. --- It's always like this—only when the risk explodes do they realize they should check the contracts... it's too late. --- Even VAR has fallen? It seems that under the guise of high returns, it's all traps. --- With insufficient liquidity and flawed risk control, what else can you expect? It's an inevitable event.

View OriginalReply0

SerNgmi

· 2h ago

Basically, it's just funds taking turns to harvest profits in the casino. If the infrastructure isn't solid and they just focus on raising money, trouble is bound to happen sooner or later.

View OriginalReply0

MEVvictim

· 2h ago

Once again, a major fund shift. Who will be the next to blow up this time? --- Basically, it's a game of hot potato; sooner or later, someone will get burned. --- Farmers really go wherever the heat is; who cares about risk control anyway? --- ParaDEX, Hype, Lighter... this cycle is all too familiar, it happens every time. --- They rush in before infrastructure is ready; serves them right. --- I just want to know where the next disaster will strike... --- VAR is also feeding off people's blood; it doesn't matter. --- High returns come with high risks, but the problem is most people can't even tell what they're playing with. --- Once liquidity issues occur, it's a chain reaction; no wonder. --- There's only so much money, so it can only be redistributed in turns. Will the next victim apply for it themselves?

View OriginalReply0

BearMarketSage

· 2h ago

Once again, there's a malfunction... Basically, funds are all rushing towards hot spots. If the fundamentals aren't solid, a collapse is only a matter of time.

View OriginalReply0

ContractFreelancer

· 2h ago

Just a new trick to fleece the little guys, the套路 is so old that some people still fall for it --- Another project that hype without a solid foundation, will crash sooner or later --- Farmers really just chase the hot topics, not thinking about the fact that pies don’t fall from the sky --- Daring to suck blood without proper risk control, isn’t that asking for trouble? --- Fundraising itself isn’t wrong, but the problem is that these projects’ infrastructure is just a pile of crap --- Fortunately, I didn’t chase this wave of VAR, looks like I dodged a bullet --- Basically, it’s users versus project teams in a race to see who can run faster --- It’s a cycle every time; the market should have learned its lesson long ago --- I saw through the TVL faking a long time ago, just虚胖 --- Still promoting with insufficient liquidity, that’s truly outrageous

View OriginalReply0

GasFeeBarbecue

· 2h ago

Another death spiral, where funds band together to warm themselves and end up all dead together. This trick has been played too many times. I really can't hold it anymore. Farmers are just the latest version of retail investors on the chain, rushing wherever there's heat. This round of ParaDEX is asking for trouble. They want to siphon funds without building proper infrastructure. Serves them right. VAR is the same. It looks lively and vigorous, but underneath it's still the same old story. It's only a matter of time.

View OriginalReply0