Recently, several decentralized finance (DeFi) platforms plunged deeper into financial turmoil and fell into liquidity crises, which triggered greater fear and challenges to the entire crypto ecosystem. The fall of Three Arrows Capital (3AC), Celsius, Voyager, CoinLoan, and Vauld are facing acute difficulties one after the other.
Head of Partnerships at XREX, Krishnendu Chatterjee, shares his take on Three Arrows Capital and their potential insolvency. Krishnendu started with the introduction of Three Arrows Capital and explained their business model and services, the reasons behind the entire crisis, and the impact of their liquidity crisis on the crypto markets, institutions, and retail investors.
Watch the video below and feel free to share your thoughts with us!
After the series of crypto lending platform crises and during the bear market, Krishnendu pointed out some suggestions to retail users:
- Carefully select the platform you stake to earn yields and understand the counterparty risk
- You should do your due diligence
- Most of the time, 10% to 20% yields for stablecoin are unsustainable. Somewhere between 5 to 7% yield is more sustainable and reasonable returns without risking the capital
- Do not put everything on one platform
XREX is a neo fintech leveling the playing field by partnering with banks, regulators, and verified individuals to redefine banking together. Our blockchain-driven solutions create a collective financial system that empowers all to participate and contribute to the global economy.
Founded in 2018 and headquartered in Taipei, XREX comprises a team of world-leading experts in cybersecurity, fintech, compliance, and cryptocurrency to offer a full suite of innovative products such as 數位支票 BitCheck, XREX 俱樂部, and Risk Level Detector to solve the dollar-liquidity shortage issues faced by cross-border merchants in emerging economies.
Disclaimer: No parts of this video can be constituted as financial or investment advice. Please do your own due diligence before making any financial or investment decisions. All comments in this video belong solely to the individual and shall not be quoted or represented as XREX’s views.