The newest โinventionโ that will crash the crypto markets is synthetic stablecoins.
Synthetic stablecoins are tokens that pretend to have stable 1:1 value to the US dollar but in reality, do highly risky trading to generate yield, for the fools who decide to hold those garbage coins.
๐๐ฉ๐ฆ ๐ฎ๐ฐ๐ด๐ต ๐ฑ๐ฐ๐ฑ๐ถ๐ญ๐ข๐ณ ๐ด๐บ๐ฏ๐ต๐ฉ๐ฆ๐ต๐ช๐ค ๐ด๐ต๐ข๐ฃ๐ญ๐ฆ๐ค๐ฐ๐ช๐ฏ ๐ช๐ด ๐๐ต๐ฉ๐ฆ๐ฏ๐ข ๐๐๐ ๐ธ๐ฉ๐ช๐ค๐ฉ ๐ซ๐ถ๐ด๐ต ๐ณ๐ฆ๐ค๐ฆ๐ฏ๐ต๐ญ๐บ ๐ค๐ณ๐ฐ๐ด๐ด๐ฆ๐ฅ $2 ๐ฃ๐ช๐ญ๐ญ๐ช๐ฐ๐ฏ ๐ช๐ฏ ๐ญ๐ช๐ฒ๐ถ๐ช๐ฅ๐ช๐ต๐บ.
Ethena takes enormous risks for the holders by doing a basis trade, a well-known hedge fund trading strategy.
Ethena makes bets in the derivatives markets by shorting the futures/perps and going long spot.
Ethena takes enormous risks for the holders by doing a basis trade, a well-known hedge fund trading strategy.
Ethena makes bets in the derivatives markets by shorting the futures/perps and going long spot.
Ethena pretends to be a stablecoin but it is actually an unregulated crypto hedge fund.
Ethena pretends to be a DeFi protocol when itโs actually custodizing clientsโ assets on their balance-sheet.
Ethena pretends there are no risks in their stablecoins when itโs actually speculating in the derivatives markets.
Ethenaย pretends to be an alternative toย Tetherย when its hedging strategy depends on USDT given that only linear perpetual contracts have enough liquidity to support their basis trade.
Ethena tricks USDe holders by giving them a false impression of safety & security by claiming USDe is a โstablecoinโ but is actually taking huge risks by doing a basis trade.
You really canโt this stuff up – crypto degenerates are so thirsty for high yield that they will put liquidity in garbage such as synthetic stablecoin.
To make it clear: synthetic stablecoins are highly risky and will blow up the crypto markets.
When the crash happens thereโs not going to be a bailout because crypto cannot be bailed out.
