What I’m hearing via my #SVBwarroom
1/ FDIC has sold ~ half of SVB's assets.
SVB's customers will have $250k unfrozen on Monday, and ~50% of the remaining balance dividended to depositers within 1-2 days of Monday (money market accounts likely to get 100%).
This is a major teachable moment for all those who run exchanges, banks, and private portfolios who play with leverage. Deflection and "trust me bro" are absolutely zero substitute for a solid risk management plan than you stick to. Binance will be one of the last standing when this is all said and done. Binance from all appearances actually sticks to its risk management strategy and doesn't allow irrelevant emotions to cause them to make bad decisions.
Leverage is for degenerates. Spot traders always win in the end.
With all the chaos over the last week with the SVB, Silvergate shutdown, and now USDC plus several other stables are off peg I think it is time to reflect on the greatest meme I have ever stolen. Leverage is fun but 99% of people have zero clue how to use it responsibly.
Even those running "exchanges". Many of these folks lack a business background thus have zero grasp of how effective risk management works. Theft is one thing which unfortunately happens as there are trash people who steal. However, losing substantial sums of money such that you become insolvent because you have a gambling problem which is entirely a personality problem.
@scottmelker The real issue is platforms allowing people to play with leverage they have no business using. Coupled a healthy dose of social media manipulation from paid promoters and hopium.
We have moved our ADA LP back to USDT, gaining roughly 11% in the process. Some of our EGLD LP was also moved to USDT, gaining roughly 15% in the process. The result of this is an additional 2500 USDT in our LP for about 9% gain. More to come, we are just getting started.