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Friday, May 13, 2022

Crypto Banking run

Hi Readers

There seems to be a massive panic in the Crypto Markets and I don't think people really understand why other than following squiggly lines and so forth.

As most of you are aware that we did state a while back that bank deposits are owned by the banks even tho they are yours. Yesterday Coinbase came out and told the market that they might go broke if cryptos prices collapse and that all coins and deposits which are on there exchanges are in fact there's. Which can be used as liquidity for up to 60 months.

Its for this reason that the ALT coins got slammed.

Most small traders have funds at exchanges which is understandable but also have coins on exchanges too.

Its for this reason unless your trading daily and are not investing in cryptos all is good.

But if your investing then the  investment is a minimum 36-48 months.

The fact that stable coins are not stable and is starting to freak some traders out.

If you have time please read the fine print on stable coins," in the event of a banking run in the Crypto market stable coins can use backed securities to the value of  potential value of the peg to the dollar.

So what that means is should tether loose the peg to the dollar which it will later, the Stable coin can give you bond which it holds as collateral. So what that mean is that the bonds, which tether paid lets say $1 and could be worth 5 cents you will have to accept worthless paper. So when exchanges are talking in this manner then you need to be concerned.


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