Institutional investors in the world of traditional finance do not have the updated risk tolerance models to face the crypto and can be confronted with trouble during the next bear market, according to the CEO of Custodia Caitlin Long.
“Big Finance is here in an important way, and it seems to be drive this cycle. I suspect that he will continue to drive this cycle ”, said Friday, CNBC at Wyoming Blockchain Symposium.
Long said that the inherited financial institutions are comfortable taking large quantities of leverage due to integrated failures in the system, such as windows at reduced prices and other “fault tolerances”.
However, she warned that these advantages disappear in the crypto, where the regulations occur in real time. The CEO said that the inadequacy between crypto and inheritance systems could create a liquidity crisis for these institutions:
“These types of defect tolerances are integrated into the system for inherited reasons, where systems did not update in real time. In crypto, everything must be in real time, and it’s just a different animal.
I am concerned about the way these Titans of finance react when the bear market inevitably returns. I know some who are optimistic and who think it will not come back. I have been there since 2012, so I know it comes back, ”she added.
Institutional investors, including cryptographic cash companies, were the most important characteristic of the current market cycle. Some investors consider this to be a positive development in adoption, while others warn that overwhelmed and inexperienced companies will dump the crypto during the next Crypto bear markettriggering a contagion that spreads in the financial system. In relation: New Crypto Advocacy Group made its debut at Wyoming Summit “The greatest systemic risk in the future is the fact that you have an ecosystem that manages risks and rebalancing in real time and another ecosystem that takes weekends, nights and holidays,” said Chris Perkins, president of the Coinfund investment company. https://www.youtube.com/watch?v=zad4fima-oq This Lowboard between the settlement mechanisms Can trigger liquidity problems, which are the source of all financial crises, said Perkins at Cointelegraph. In June, a venture capital company (VC) published a report concluding that most new bitcoins (BTC)) Cash flow companies Do not survive the next slowdown in the market. The venture capital company has warned that the overvaluation and the drop in prices of assets will create a vicious circle which obliges these cash companies to empty their assets on the market, further depressing the cryptography market. Review: Altcoin season 2025 is almost there … but the rules have changed
A high -level crypto lawyer predicts a 70% chance that the court approves the undulation and the request of the… Kindly (Turned)The company listed at Nasdaq which recently merged with Bitcoin The Nakamoto cash company has closed a $ 200… The American SEC Commissioner, Caroline Crenshaw, strongly criticized a press release published Tuesday by the Division of Finance of the…The CEO of Gustodia echoes concerns largely susceptible to industry leaders and analysts
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