Thanks for the write up.
It seems crypto keeps falling into the 2008 trap of its biggest pillars also being the biggest speculators. We need to start demanding that these companies don't take on market risk in the same way Dodd-Frank prohibited banks from doing it. Otherwise, the only thing that's going to stabilize this is regulation.
Financial institutions are in a constant battle with each other and these small crypto firms are no match for them. As more wall street institutions decide they want in, they are going to target these smaller crypto companies pain points. If that means knocking ethereum down by half just to watch Celsius implode so they get a better price on eth while bringing more customers under their trusted umbrella, they will do it.
No idea if that's what's happening here but these exchanges are putting themselves in very vulnerable positions that are now hurting the whole space.
I don’t know if I want that kind of regulation in crypto as in stocks. I do feel something is needed but crypto is meant to be leverage from the get go. It just want too far and to fast. Now as the tides are receding we see who are swimming naked.
What makes you say crypto was meant to be leveraged?
The fiat and financial system that currently stands does not rise as fast as real inflation so the wealth of the younger generation lagging. With crypto put into defi the growth accelerated to out pace real inflation. The risk is of course it can all crumble down. Fast rise can also come with fast falls.