Terra’s meltdown highlights benefits of CEX risk-management systems
The Terra collapse demonstrates why crypto exchanges need advanced risk management systems — especially when providing access to DeFi protocols offering favorable yields. The collapse of Terra’s ecosystem — namely, native coin LUNA and algorithmic stablecoin TerraUSD (UST) — rocked the wider blockchain and cryptocurrency ecosystem. Not only did Terra-ecosystem tokens (such as Anchor’s ANC) collapse in value, but the widespread fear, uncertainty and doubt sent market-leading cryptocurrencies Bitcoin (BTC) and Ether (ETH) below $27,000 and $1,800, respectively, on some exchanges.As of the....
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DAI tops it off as the strongest stablecoin to date despite Terra’s plunge. USDT and UST may have plummeted – but not DAI. It’s been a brutal two weeks in the crypto space especially with the devastating collapse of Terra’s stablecoin UST, which is currently trading at a little below 6 cents. Suggested Reading | […]
The cryptocurrency market has seen a lot of dark days in its history, but few compare to the events of the past week. Terra’s meltdown forced cryptocurrency investors to ask a question they never thought was possible: Will TerraUSD (UST) or Terra (LUNA) reach $1.00 first? The magnitude of this question provides a sobering reminder of just how quickly things can change in crypto. While Terraform Labs co-founder Do Kwon remains defiant, many people in the industry are beginning to distance themselves from the protocol they thought was delivering real-world utility for stablecoins and Bitcoin....
To attract and retain the interest of institutional traders, we need advanced risk management tools that can maximize gains for investors. Risk management is a vital element of success for any trader in any market. No matter the size of the capital you’re trading with or investing in, losses are going to be inevitable, particularly in highly volatile markets like cryptocurrency. Learning how to manage risk to minimize losses is vital. Yet, it’s also necessary to master risk management in order to ensure maximum gains. After all, the more you’re willing to risk, the greater the potential....
Risk management is a crucial part of any investment portfolio. It is the process of identifying, analyzing, and insulating investments against uncertain market occurrences. Risk mitigation is even more essential in a cryptocurrency investment portfolio because of the volatility associated with this investment class. Warren Buffet, the king of value investing, cautions all investors using […]
As fraudsters exploit attack vectors that enable bitcoin double spends, merchants should be aware of options to mitigate their risk. The post A Fraud Risk Management Framework For The Bitcoin Ecosystem appeared first on Bitcoin Magazine.