Mikey

[Matt Shumer @mattshumer_]

https://t.co/ivXRKXJvQg

[Mikey @0xZacc]

almost 1 month in... 2 more months to go...

[Mikey @0xZacc]

Incredibly lucky that i was not affected in this flash crash… was 100% in spot.

I still recall post FTX contagion, was hell.

Probably gonna hold my spot and disappear for next 3 months. Feels like its gonna be hell instead of a buy-the-dip-v-shape bounce kinda thing

[Based Money Lich King 💀 @BasedMoneyLich]

I knew Ping was an obvious fade this week because what happened on Binance was going to have repercussions in the following days to weeks.

If you had paid attention, Wintermute was openly stating that Binance fucked them with aggressive ADL at prices that didn’t make sense & WM couldn’t have been the only MM that was screwed over.

Market makers hold spot long & go short perps so no matter what way a coin moves they do not lose or make money. Instead they make money by routing trades, arbitraging across CEXs, & taking a small cut every time you buy or sell, similar to MEV.

If an exchange starts aggressively closing short positions at much higher prices, like what WM claimed, while prices rapidly nuke & they can’t re-short fast enough than they are sitting on huge losses. They then have a tough decision to make…sit on the loss & hope prices go back up or dump your bags ASAP, stop providing liquidity, & gtfo until people figure out what the hell is happening. No matter what decision the MM makes, it’s going to result in thin ass books.

WM said in the interview they did that they were still waiting to find out if they’d be compensated for the losses they took. Likely means other MM’s are waiting too because a client as big as WM would be your priority as a business. And Binance, like any business would have to sort through how much they’d be willing to compensate MM’s, ensure claims are legit, & route things through legal. It’s gonna take a while to sort out the mess, WM isn’t the only MM that operates on Binance. There are a lot of them.

People who thought last week wasn’t a big deal, you’re wrong. It was a huge deal. Some assets went to literal zero. We don’t know how much MM’s lost. MM’s taking on big losses means thinner books & thinner books in a market that already struggles with liquidity while the President of the United States is in a trade war with China is not a recipe for Wonderful Wednesdays. And to that fact that the crypto participants who are left are down and & poor now. Many got liquidated in the chaos. There are less buyers now than there were. The wealth effect is now gone. Crypto natives have been reduced to Haitians.

I agree with WM that what happened impacts shitcoins far worse than it does BTC & majors. Binance has lost a ton of trust and deserves your scorn. I don’t know if it was on purpose or just a big mistake, but the point remains they cannot be trusted.

Sorry Ping. At least you put your nuts on the table.

[6哥 ⁶⁶⁶ 🇨🇳 chinawhalecapital.eth @ChinaWhaleETH]

If you are a victim of this reckoning, please join us.

https://t.co/O7h4DYfvWi

Thousands of traders were liquidated.
Stop-loss orders failed. The system froze. The charts were changed.
And after everything @binance gave us a “victim form.”

Some filled it out and got locked out of their apps.
Others never received a single reply.
CZ @cz_binance keeps smiling, HeYi @heyibinance keeps hiding, and users are left in silence.

This is not just a “market crash.”
This is system negligence and data manipulation that destroyed lives.

If you were affected join us.
We’re building a community of traders who refuse to stay silent, who will demand answers, and who will not be gaslighted by billion-dollar PR.

Together, we are louder than their silence.
Join the movement. Speak up

[Watcher.Guru @WatcherGuru]

JUST IN: $200,000,000 liquidated from the crypto market in the last 4 hours.

[Mikey @0xZacc]

@SpencerHakimian For his son to insider trade the crypto markets.

[Mikey @0xZacc]

@0xAnteater oof, sounds like a dig at Pigeon

[CoinMamba @coinmamba]

Since we’re all taking about how exchanges functioned during yesterday’s nuke, let me tell you how I got liquidated on Binance.

I was running a pair trade, one long and one short position. As the prices started nuking, my margin got low and instead of partially liquidating my both positions Binance decided to completely close my short position and keep my long fully open which then obviously got liquidated. And no, it wasn’t ADL.

Was running similar positions on Lighter and Extended which perfectly survived the crash.

Not sure will continue to trade on Binance after this. Better to trade on dexes with zero fees plus I get points..

[Skew Δ @52kskew]

$BTC some previous times where price nuked as hard as it did today

In all charts we had around 1 - 3 month consolidation, the type of consolidation with a macro backdrop is going to be very important for market direction from here & positioning

aug 2023

nov 2022
FTX Crash

dec 2021
Flash crash

may 2021
Summer sell off from HTF distribution

[Zaheer @zaheerebtikar]

When the market turns like this, there’s usually a pretty straightforward playbook for the aftermath.

1) Market bleeds out and MMs are offline and start refilling by first taking out big spot and perp arbs on assets.

2) Once exchanges and API feeds are back online, market makers and big traders start biting on big orders to bring the market back to equilibrium.

This is met with liquidation orders being processed. Liquidation orders are processed at the top of the exchange order queue so it’s very juicy to pick off if you have balance sheet.

Given the size of this liquidation (~$25-$40bn) it will take a while to chew through this.

3) Once dealers fill long they will start unwinding spot and perp when the market is back to equilibrium. This is when the market hits a local maxima and the Dalai Lama chart starts hitting.

Some assets that have tighter supply will look better than others.

4) Dealers unwind over the next 24-72 hours depending on the liquidations and the market absorption. This is generally harder on weekends because no ETFs.

5) Market finds a natural floor and ceiling and starts a new anchor

Note: this is assuming that the market’s headline risk has mostly subsided. In the case this isn’t true, there is a lot more room for pain depending on leverage ratios.

This is a trader’s market for the time being.

Good luck and good night 💤

[G | Ethena @gdog97_]

Binance has historically pursued a strategy of providing in-house product solutions, and very rarely open their platform to external teams without rigorous examination and a demonstration of very clear product market fit.

Both their investment into Ethena and now integrations of USDe into the Binance platform required many months of detailed diligence.

I've personally learned a lot from them this past year and am convinced that you can only build a lasting business at the scale they have by always doing right by your users and never letting that standard drop.

That is the only way to earn the trust of >250m users.

The holy grail of dollar asset distribution has always been embedded within centralized exchanges alongside their user bases.

And as of today USDe will now be integrated fully across the entire product suite of the largest exchange in the world.

We couldn't be more excited to be expanding our relationship with Binance to offer their users a unique product across their entire platform including:

i) USDe futures margin collateral across the entire derivatives platform
ii) USDe spot trading pairs
iii) Direct integration into the Binance Earn program

With more coming in the next few weeks.

Binance currently holds over ~$130b of assets and ~$40b of stablecoins, and we expect USDe to grow into one of the largest on their platform.

USDe penetration for USD assets on other CEXs sits at roughly ~12% which would correspond to >$4.0b of USDe on Binance.

Only the beginning for Ethena and Binance.

[Tom Capital @Tom__Capital]

I'm unsure why few people are discussing how companies pivoting from core operations to chase hype-driven trends mimics the end of previous prolonged bull markets. These same shifts have historically preceeded corrections or crashes.

This pattern resembles today's trend of non industry related companies, typically with poor business models, weak balance sheets, little to no revenue and one would argue shitty management are adopting "digital asset treasury" strategies, allocating significant balance sheet portions to Bitcoin (BTC) and Ethereum (ETH).

Historically, such pivots involved rebranding, aggressive acquisitions, or adopting unrelated high-growth narratives to inflate stock prices, often using cheap debt, high valuations, or investor FOMO.

I observed this in the 2000 bubble and crash, and more recently in 2017/2018 during the ICO and Bitcoin boom, where non-crypto companies rebranded as "blockchain" to ride the hype, preceding an 80% market dump.

History repeats in markets—remember this to avoid holding the bag and walk away with the cash.

Thanks for coming to my TED talk

[Mikey @0xZacc]

I think its about time we start looking into Chinese equities.

China is busy cookin while america is a shitshow

[Luke Broyles @luke_broyles]

The most terrifying thing for markets right now is NOT the tariffs or stock collapse. That is what is flashy and everyone focuses on.

What worries me is that bonds are getting no bids.

Investors “should” be going to bonds but they aren’t. Yields pumping high. Investors are losing faith in US debt.

These bonds are supposed to be the risk-off asset and they are ALSO selling off.

I keep asking myself if I’m foolish for staying in Bitcoin but everywhere I look is an increase of risk. There are dozens of ways this could play out and I literally am yet to think of ONE where Bitcoin fails to eat treasuries (and stocks) alive.

A year ago I predicted Treasuries would fall 80% against Bitcoin within 5 years and that is still on track even with the recent Bitcoin 30% decline.

I continue to believe Bitcoin is the lowest risk asset right now. Wish I was wrong, because basically everybody I know has zero Bitcoin.

Have no idea what happens next but I think ugly for stocks+bonds in terms of Bitcoin.

[Mikey @0xZacc]

This is crazy! Lmao! Cant believe he is still so insistent.

Goodness. Time to go back to elementary school

[Nayib Bukele @nayibbukele]

This guy said we used Bitcoin for money laundering and corruption 😂

[Nachi @alphawifhat]

@DefiSquared I'm with you on this. Given its social status, clear moat and still plenty room for improvement, it's not hard at all to hit a few bn of valuation. And there're many ways for Elliott wave to play out, I can easily give everyone an AIXBT count going to a few bucks

[Mikey @0xZacc]

@SplitCapital If only he can shift that decimal backwards, that would be perfect

[Mikey @0xZacc]

@0xMerp Whats the chance of 2nd one happening? given how fast the pump was earlier on. 1 single UHNW entity?