Home News Fears Of Further Contagion In The Bitcoin Market

Fears Of Further Contagion In The Bitcoin Market

Jun 18, 2022 comments off

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Over the last week, we have extensively covered the contagion that has taken hold in the broader crypto market, highlighting the events leading to the closure of withdrawals at Celsius and now the insolvency of Three Arrows Capital (3AC), previously a giant in the hedge fund space.

This article will further examine some of the potential knock-on effects of these events.

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Statement posted to Deribit’s Twitter account

With Three Arrows Capital being an early investor on the platform, if Deribit sustained losses from 3AC, it would seem as though the company was letting the firm trade using unsecured funds, given the collateralized nature of derivative trading platforms.

With the recent developments, rumors have been flying, with speculation that multiple crypto lending/borrowing desks have been hit from insolvency.

This is a good reminder for readers to learn the importance of self-custody and the ability to hold your own money with no counterparty risk.

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