The other day I wrote about yet another company based in crypto getting in some big trouble as people try and take their crypto or money out of it. Much like a run on the banks during the great depression crypto seems to now be flying into this mess of things. I've also noticed limited liquidity all over crypto when trying to make swaps and it's a real pain when trying to buy up these great deals right now.
The company in trouble this time is Vauld. Vauld is a crypto lending platform which also seems to have ties to other platforms that went through some major struggles. Ones such as Terra Luna stable coin, Celsius network pausing their withdrawals and three arrows who recently defaulted on their loans.
This goes to show that many of these platforms where relying on each other in order to gain those capital gains. That's seriously never a good thing and the fall out from this is going to be rather substantial.
This is going to continue to shake crypto for a while until all the junk is removed. The fake investments or ones that relied too heavily in one market or the other that fell on its face. Months last the rippling effects of LUNA and their so called stable coin are being felt in any platform that was attached to it. While some are able to write off the losses smaller ones or ones the heavily relied on a single asset are coming under some serious pressure.
Because of this some of the larger companies that have been able to weather this storm are now grabbing up these assets for pennies. The move this time comes from Nexo who is offering to buy the rival company Vauld.
Here's one very critical thing I want you to learn by reading this. Yes in the short term you might be make serious money and people think you are wonderful compared to the slower more stable growth of another company but at some point that entire system is going to fall if you have not built a solid foundation and because of that you'll most likely end up with nothing because trying to time that perfectly is going to be nearly impossible.
What's pretty wild is there companies could have actully been offering up legitimate returns in the form of crypto tokens through staking and a minor fee collection. But instead got mixed up into high APRs, DeFi and other applications that put some seriously high risk on their books instead of creating a stable long term base.
This is something the LeoFinance team is doing with the likes of PolyCub and soon after CUBDeFi for sure though we are seeing serious stress across all of crypto from miners to bank type systems that promised crazy high APRs. If it sounds too good to be true it most likely is and we are seeing that collapse now.