Kadena Queen 👑 ⛓️🕸️ retweetledi

Yeah man crypto is the future, let me bring you up to speed
First, TerraUSD collapsed, a massive Ponzi scheme where investors were promised 20% APR on their USD ($20B in UST and $40B in LUNA wiped out)
This caused the largest crypto hedge fund to go insolvent due to excessive leverage, 3AC ($3B AUM wiped out)
3AC borrowed funds from all the largest crypto lenders, each of who went insolvent after bank runs inevitably occurred, causing a market wide credit crunch
Celsius ($12B AUM, $1.2B deficit), Voyager ($1.6B AUM, ~$670M default), BlockFi ($3.9B AUM, $400M revolving credit)
Voyager and BlockFi were bailed out by FTX/Alameda, but ah turns out they were complete fraud too
With $10B of customer funds siphoned from FTX to cover Alameda’s losses, a bank run took place, creating a second contagion wave, leaving Voyager/BlockFi rekt again
Genesis Lending, under the DCG conglomerate, also went bankrupt due to Alameda/FTX exposure ($3B shortfall)
Gemini was lending $900M in customer funds to Genesis, so they and their customers inevitably got wrapped in the mess too
No doubt TradFi is involved in this too, with the collapse of two banks that were key banking partners for crypto
Silvergate (FTX’s banking partner and ran an payment network for crypto exchanges) experienced a bank run and collapsed after losing $1B on bonds
While SVB (Circle’s banking partner for USDC and most tech startups) experienced a bank run and collapsed after losing $1.8B on bonds
Not looking too good for Signature Bank either, which runs the ‘other’ bank payment network for crypto exchanges
Can’t forget the SEC trying to strongarm the industry from shutting down Kraken’s staking product to calling Paxos’ stablecoins a security and shutting down BUSD, and much more
Various banking regulators also strongarming banks into refusing to onboard crypto companies as clients, forcing them overseas and to use sketchy counterparts
Anyways
Have you heard of liquid staking derivatives and re-staking? Pretty cool financial engineering right there, crypto innovation never stops 💪

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