"Virtual asset market needs 'systemic discipline' rather than 'speculation' to mature"

In a market where unlimited leverage and emotionally driven pricing can trigger tens of billions of dollars in liquidations in a single day, it was argued that the maturation of virtual assets (cryptocurrencies) should begin with 'systemic discipline' rather than 'speculative fever.'

Lucas Kiely, CEO of Future Digital, wrote in a Cointelegraph op-ed on the 15th (local time) that "virtual assets are inherently speculative because, unlike traditional assets, they lack tangible value metrics such as earnings or supply chains," and he warned that "unless market participants establish systematic, long-term investment criteria, crashes and liquidations will repeat."

Kiely noted in particular that "the virtual asset market allows unlimited leverage, enabling even retail investors to open positions greater than 100x," calling this "a structural vulnerability that triggers a 'liquidation domino' that can evaporate billions of dollars in hours." In fact, in two large crashes at the end of September and the beginning of October, positions totaling $1.8 billion and $19 billion, respectively, were liquidated.

He explained, "Only Bitcoin has a limited supply structure and a higher share of institutional capital, but most tokens are extremely unpredictable assets driven by demand and sentiment," adding that "this instability originates from a free-market structure lacking financial discipline."

Kiely also emphasized, "There are claims that tech stock valuations are overheated, but companies like Apple or NVIDIA still have fundamentals such as earnings, cash flow, and products. However, most digital assets lack these basic values."

For future market development, he suggested that ▲leverage limits ▲increased risk awareness ▲and liquidity stabilization through the systematic inflow of institutional capital are essential. "Those who built wealth with Bitcoin were merely lucky cases; now that the market is entering a maturation stage, investors must also adopt systemic thinking and risk management skills," he added.