Crypto Crisis Brings Back Ghosts of Lehman Brothers
— Chief executive, 3ac, Public, Failing, Major market participants, Working, Greed, Domino effect, Made, Poorly managed risk — 1 min read
The crypto-liquidity crisis started in May, when sister tokens Luna and UST collapsed, wiping out at least $55 billion of value. There are similarities with the 2021 Archegos Capital Management scandal, but the analogy with the 2008 financial crisis also comes up. In both cases there's an "inability" to disclose market-driven risks, experts say. The difference, however, is that the crypto community is not unregulated and does not have a liquidity backstop."The contagion is mostly caused by individual individual risk by poorly managed risk by individual lenders/custodians," says Dan Hoover Castle, director at Hoover Castle Funds Funds. TheStreet interviewed industry players about the current situation. Here's what they said to TheStreet Source