CoinEx founder: Crypto market will collapse as new funds dry up

The cryptocurrency market is poised for a large-scale collapse because it lacks real value, is drained by $50 billion in annual operating costs, and is running out of new capital, argued Yang Haipo, founder of crypto exchange CoinEx. He claimed that while the total crypto market capitalization exceeds $2 trillion, the supply of stablecoins acting as effective collateral is estimated to be only between $250 billion and $300 billion, implying a real leverage of eight to 10 times. "This means that if 5% to 10% of all crypto holders attempt to cash out simultaneously, liquidity could evaporate, leading to a price crash," Yang explained. He noted that funds flowed from retail investors in 2017, institutions in 2021, and ETFs in 2024, but the capacity for new capital inflows is now exhausted. According to Yang, costs such as salaries for approximately 1.6 million industry employees, mining expenses, and exchange operating fees are continuously eroding internal capital. Meanwhile, real revenue generated from external sources like stablecoin payments covers only a fraction of these operational costs. "The entire system is structured to collapse the moment the inflow of new investor funds falls below the annual operating expenses," he concluded.