Leverage & Interconnectedness Are Blowing Up Crypto & DeFi
CFO News Room
JULY 9, 2022
What’s different this time about the collapse of cryptos, compared to last time in 2018, are two huge factors that were barely in their infancy back then: massive leverage and interconnectedness. Voyager got taken down by the crypto hedge fund, Three Arrows Capital, which blew up amid huge leverage when cryptos plunged. And now the two concepts of leverage and interconnectedness are tearing up the cryptos, crypto exchanges, the DeFi outfits, crypto stocks, and crypto hedge funds.