xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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Crypto liquidity is a myth.
ChatGPT describes crypto liquidity as:
Crypto liquidity refers to the ease with which a cryptocurrency can be bought or sold on the market without significantly affecting the overall market price. High liquidity means that there are many buyers and sellers in the market, and it is easy to buy or sell large amounts of the cryptocurrency at the current market price. Low liquidity means that there are fewer buyers and sellers, and it may be difficult to buy or sell large amounts of the cryptocurrency without significantly affecting the market price.
When you see the volume of certain crypto go up, you assume whales are buying up the market. However, it may not be the case.
Because there are not regulations, crypto trading are likely a wash trading in which bots can trade multiple times per second and without notice from the blockchain.
There are also many crypto lending services that highly leverage crypto and perform arbitration around the exchanges.
After the FTX collapses, crypto lending services are dying out and liquidity will dry a bit. But those will come back no time.
Therefore, in my opinion, volume is not a trustable indicator of the crypto market.
Photo by Pawel Czerwinski on Unsplash
Crypto liquidity is a myth.
ChatGPT describes crypto liquidity as:
Crypto liquidity refers to the ease with which a cryptocurrency can be bought or sold on the market without significantly affecting the overall market price. High liquidity means that there are many buyers and sellers in the market, and it is easy to buy or sell large amounts of the cryptocurrency at the current market price. Low liquidity means that there are fewer buyers and sellers, and it may be difficult to buy or sell large amounts of the cryptocurrency without significantly affecting the market price.
When you see the volume of certain crypto go up, you assume whales are buying up the market. However, it may not be the case.
Because there are not regulations, crypto trading are likely a wash trading in which bots can trade multiple times per second and without notice from the blockchain.
There are also many crypto lending services that highly leverage crypto and perform arbitration around the exchanges.
After the FTX collapses, crypto lending services are dying out and liquidity will dry a bit. But those will come back no time.
Therefore, in my opinion, volume is not a trustable indicator of the crypto market.
Photo by Pawel Czerwinski on Unsplash
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