Crypto or not, when a large, heavily leveraged hedge fund implodes, it's really complex to unwind. It was the same when Bill Hwang's Archegos Capital failed last year:
The day they got wiped out, the liquidations caused a 27% drop in share price of ViacomCBS. The various lawsuits and charges of fraud and racketeering will take years to work their way through to completion.
"custodianship", as it is known, does begin to exist in crypto world. The custodian / administrator / prime broker (all related terms) hold the actual keys, and you have something like a limited key that permits some pre-agreed operations. So for example you can only wire funds to pre-approved addresses.
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Crypto or not, when a large, heavily leveraged hedge fund implodes, it's really complex to unwind. It was the same when Bill Hwang's Archegos Capital failed last year:
https://en.wikipedia.org/wiki/Archegos_Capital_Management
The day they got wiped out, the liquidations caused a 27% drop in share price of ViacomCBS. The various lawsuits and charges of fraud and racketeering will take years to work their way through to completion.
Are there other crypto funds that are structured to handle a failure better?
I know it's crypto but it's shocking to see people invest in a suitcase stuffed with dollar bills.
"custodianship", as it is known, does begin to exist in crypto world. The custodian / administrator / prime broker (all related terms) hold the actual keys, and you have something like a limited key that permits some pre-agreed operations. So for example you can only wire funds to pre-approved addresses.
DeFi is holding up just fine.