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16-06-2022, 04:37 AM
Many schemes involve layers of leverage. Some like celcius operating like leveraged bank using deposits to buy another cryptos. When problems appear it simply suspend accounts.
Nobody check nobody regulate nobody stabilise.
The leverage in the system is very high with depositors promised high returns ... lend their assets to leveraged players to gamble on ever rising prices. When things go in reverse everything unravels. People run... leading to a death spiral.
Unlike during financial crisis, there is no govt to step in to support the system and guarantee deposits and interests. Crypto collapse will cascade and continue.
If one owns any just sell, get out to recoup some funds because incurring more losses. There are still many early birds who can get out profitably even if it falls by another 50% so there will be endless selling pressure.
https://www.straitstimes.com/business/ec...currencies
Nobody check nobody regulate nobody stabilise.
The leverage in the system is very high with depositors promised high returns ... lend their assets to leveraged players to gamble on ever rising prices. When things go in reverse everything unravels. People run... leading to a death spiral.
Unlike during financial crisis, there is no govt to step in to support the system and guarantee deposits and interests. Crypto collapse will cascade and continue.
If one owns any just sell, get out to recoup some funds because incurring more losses. There are still many early birds who can get out profitably even if it falls by another 50% so there will be endless selling pressure.
https://www.straitstimes.com/business/ec...currencies
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
