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Core Viewpoint - The incident involving the influencer Liu Ergou highlights the pitfalls of relying on vulgar content for traffic and revenue in the influencer industry, signaling a need for change in practices and regulations [1][27]. Group 1: Liu Ergou's Controversial Practices - Liu Ergou, a top influencer with nearly 44 million followers, faced penalties for a live stream that featured inappropriate content, marking a significant downfall in his previously successful career [1][24]. - His past live streams have included multiple instances of vulgar remarks and inappropriate behavior, such as making jokes about women's bodies and engaging in suggestive actions [4][5]. - The recent live stream incident, which lasted nearly three hours, showcased Liu engaging in soft-pornographic content to attract viewers, reflecting a pattern of behavior aimed at increasing traffic for monetization [5][10][8]. Group 2: Financial Success and Business Model - Liu Ergou's financial success is notable, with his first sales event generating over 300 million yuan in revenue, and he has developed a model of leveraging his influence to manage and profit alongside other influencers [9][10]. - Recent data indicates that he gained over 1.3 million followers in the last 30 days, with an average sales figure of 4.43 million yuan per live stream [11]. - His financial portfolio includes significant assets, such as a 70 million yuan office purchase and 1.75 billion yuan in cash as of 2022, indicating a lucrative but controversial business approach [12][13]. Group 3: Industry and Regulatory Implications - The incident has exposed the inadequacies of platform regulation, as the live stream continued for hours despite numerous viewer reports, highlighting a prioritization of traffic over compliance [28][30]. - The influencer industry is facing increasing scrutiny, and the downfall of Liu Ergou serves as a reminder that reliance on vulgar content for growth is no longer sustainable [31][33]. - For the industry to thrive, influencers must build trust with their audience by promoting positive values and adhering to regulations, while platforms need to enforce stricter compliance measures [34][35][36].