Liquidity Problems happen when protocol owners don’t plan for unfavorable periods, says Brian Pasfield, CTO of Fringe Finance.
The current market conditions are far from perfect for many crypto industry players, and lending platforms are no exception. For the past few months, many have been facing liquidity problems that put stress on their users and the broader crypto space.
Let’s analyze how we’ve come to face these problems – and try to offer some solutions.
Liquidity Problems: Market turbulence on the rise
Celsius made every imaginable business news outlet when it paused all withdrawals due to liquidity issues last month. After announcing it would lay off a quarter of its employees due to “extreme market conditions,” Celsius filed for bankruptcy under Chapter 11 of the U.S. bankruptcy code.
Similarly, two weeks ago (an eternity in crypto land), the Voyager Digital crypto platform announced the suspension of cryptocurrency trading and withdrawals for its users. As representatives...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...