Good question. Finding that out would take a lot of on-chain analysis.
I have no love for these firms so I really don't care if they are solvent. For those that took major risks with leverage and mismatched their risk on duration, let them fail. Some in this thread seem to be saying that having humans involved in liquidations is preferable because it prevents contagion. To me, that sounds like letting someone get away with bad decision-making and safe-guarding them against the previously defined consequences. Sounds like the same kind of philosophy that makes some firms in traditional finance "too big to fail." This kind of thinking kicks the can down the road instead of addressing the problem and feeling the pain now.
I say liquidate them. Maybe that's easy for me to say because my only exposure has been through defi protocols that I interact with directly and with risks that I've considered. These Cefi companies take retail money, use it to take risky positions in defi, then take a large cut of the profits. Works great until a market downturn and people start asking for the their Eth back and, whoops, we don't have access to it until 6M+ post-merge (Celcius). That's called piss-poor risk management and I don't want these kinds of actors in the market long-term. I feel bad for the retail that is getting screwed in all this but in the end, we need regulators / DOJ to come down very hard on these companies. If we clean house now, the space will be stronger in the future. Yes it will be painful in the short term.
Good to know,
Who are these fully capitalized crypto firms?
Good question. Finding that out would take a lot of on-chain analysis.
I have no love for these firms so I really don't care if they are solvent. For those that took major risks with leverage and mismatched their risk on duration, let them fail. Some in this thread seem to be saying that having humans involved in liquidations is preferable because it prevents contagion. To me, that sounds like letting someone get away with bad decision-making and safe-guarding them against the previously defined consequences. Sounds like the same kind of philosophy that makes some firms in traditional finance "too big to fail." This kind of thinking kicks the can down the road instead of addressing the problem and feeling the pain now.
I say liquidate them. Maybe that's easy for me to say because my only exposure has been through defi protocols that I interact with directly and with risks that I've considered. These Cefi companies take retail money, use it to take risky positions in defi, then take a large cut of the profits. Works great until a market downturn and people start asking for the their Eth back and, whoops, we don't have access to it until 6M+ post-merge (Celcius). That's called piss-poor risk management and I don't want these kinds of actors in the market long-term. I feel bad for the retail that is getting screwed in all this but in the end, we need regulators / DOJ to come down very hard on these companies. If we clean house now, the space will be stronger in the future. Yes it will be painful in the short term.