An investor using one of these platforms assumes the risk that a bug or exploit in these programs could cause them to lose their investment. Programming risks: Many investment and lending platforms use automated smart contracts to control the movement of user deposits.Many investors have lost large sums to management teams that failed to deliver a product. Management risks: Due to the lack of coherent regulations, there are few protections against deceptive or unethical management practices.Theft or loss by one of these third parties could result in losing one's entire investment. Counterparty risks: Many investors and merchants rely on exchanges or other custodians to store their cryptocurrency.A sudden regulatory crackdown could make it challenging to sell cryptocurrencies or cause a market-wide price drop. Regulatory risks: The regulatory status of some cryptocurrencies is still unclear, with many governments seeking to regulate them as securities, currencies, or both.By some estimates, about one-fifth of all bitcoins are now inaccessible due to lost passwords or incorrect sending addresses. User risk: Unlike traditional finance, there is no way to reverse or cancel a cryptocurrency transaction after it has already been sent.You know shit is hitting the fence when you are lev trading a "stable" coin □ pic.twitter. Leveraging could potentially amplify returns for these traders, as evidenced by the futures funding rates on Bybit, which reached as high as 0.3% on Saturday morning. These traders are betting on this gradual recovery to $1 due to the relatively cheap price of USDC. Some traders are purchasing USDC in anticipation of a potential 10% gain if the tokens return to the intended dollar mark. LOOK OUT BELOW /Cm72Ec854SĬZ took to Twitter to speculate if it was time for exchanges like Binance to start buying up distressed banks. The news has prompted renewed fears that fiat on/off ramps in crypto can become “choke points” for the government to target the crypto industry at large. That news followed fears that the contagion from the SVB collapse would also affect other crypto institutions, which it has, with both BlockFi and Avalanche also revealing connections to the distressed bank. economy and will follow the guidance provided by state and Federal regulators.” “Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. “Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB,” Circle said in a tweet. Overnight, USDC lost 14 cents from its $1.00 peg, tumbling to as low as. Tether, the stablecoin USDT, surged momentarily on news it is unaffected by SVBĪ day after the west-coast bank Silicon Valley Bank (SVB) was placed into federal receivership and b both deposits and withdrawals ceased, Circle, the issuer of the stablecoin USDC, lost its $1.00 peg to the US dollar, prompting fears of a run on the stablecoin similar to what happened during the wind-down of UST in the wake of its depegging from Terra Luna.12 days ago, Gregory Becker, the CEO of Silicon Valley Bank, sold 11% of his shares.Nic Carter says the crackdown is “Operation Choke Point 2.0” a remnant from Obama-era Justice department policy.
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