Very concentrated and very leveraged. It seems like 90% of the crypto ecosystem that isn’t outright fraud exists to provide leverage to the rest of it. So each downturn prompts liquidations which depresses the price further and leads to more liquidations and so on.
And these idiots leverage into other areas of crypto - derivatives, alt-coins, DAO’s, arbitrage, liquidity pools, lending, or partner with other orgs that do, then proclaim they are balanced portfolios when they are all so intrinsically connected, when one pops, the rest follow.
Banzai
3570
its like the whole thing is built on air and belief.
Totally balanced! The “investments” are diversified over a wide range of scams and grifts.
JoshL
3573
Yeah, one thing I noticed is that when that sharp drop happened last night, it happened to all the different cryptocurrencies at the same time. I guess somebody liquidated a wide range of currencies all at the same time. Some have recovered (or partially recovered), most have not. Probably has to do with relative volume, but I haven’t dug that deep.
Reading over on Reddit another stablecoin has de-pegged and there are rumors of insolvency. The stablecoin is called… Magic Internet Money.
JoshL
3575
Gotta respect truth in advertising
Banzai
3578
im fine with a fool and his money are soon parted until the volumes of grift become large enough to tank the economy. too big to fail hurts everyone, not just the fools.
Thrag
3579
Which is why it would be nice if crypto died now before it becomes further integrated into the economy. I still cringe every time I hear those ads about investing your IRA in crypto.
Yeah, I’m hoping for a quick crypto death, and hoping it’s not too late already.
Western countries should have been regulated this shit years ago and it would have never gotten to this point.
Bet the SEC is feeling real good about not authorising any BTC ETFs.
It’s barely above 18000 now.
CraigM
3584
So if the Great Depression had stock brokers jumping out the windows of Manhattan skyscrapers, is this going to have crypto bros jumping out the windows of their mothers basement?
Driving Lambos off bridges.
