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Mar 15, 2023 12 tweets 6 min read Read on X
Is @CreditSuisse safe?

1/12 Credit Suisse's #CDS premiums have soared to higher levels than during the 2008 financial crisis, fueling speculation of a crisis. Image
2/12 A credit default swap(CDS) premium is the rate at which an insurance policy guarantees the principal in the event of a default,
3/12 and a higher #CDS premium means that the risk of default is higher, and therefore the policy requires a higher fee. #CreditSuisse blames three events in 2021 for the rise in CDS premiums. First, around March 2021, Bill Huang's Archegos Capital collapse. Image
4/12 Bill Huang borrowed close to $60 billion against $7 billion in collateral to buy Chinese stocks, including Baidu, which were then sold against as the Chinese stock market crashed. #CreditSuisse ended up losing $5.2 billion. Image
5/12 Second, around the same time, in early March 2021, UK-based #Greensill Capital filed for bankruptcy. #CreditSuisse was an almost exclusive buyer of asset-backed securities(ABS) created by Greensil Capital. Image
6/12 As the pandemic worsened, note issuers began to fail, and ABS that pooled accounts receivable began to lose money. Unable to sustain the losses, #Greensil Capital filed for bankruptcy in March 2021, and #CreditSuisse lost about $7 billion on the ABS.
7/12 In a third incident, in March 2022, a #CreditSuisse whistleblower anonymously leaked inside information to the German newspaper Suddeutsche Zeitung. The list revealed that Credit Suisse was managing the unusual assets - Image
8/12 of everyone from human traffickers to dictators, corrupt figures, and individuals under economic sanctions. The assets entrusted to 30,000 unusual clients totaled more than $100 billion.
9/12 However, #CreditSuisse refused to respond to the reports, citing Swiss laws. The $88.3 billion in deposit outflows in a month and a half could have been due to the $100 billion entrusted to these 30,000 customers, rather than individual customers running away from the bank.
10/12 #CreditSuisse is about to release its 2022 financial statements, but the U.S. stock exchanges have ordered a delay. After working something out with the #US stock exchange, they did release their 2022 results, but a net loss of $8 billion was eventually confirmed, Image
11/12 and worse, serious weaknesses were found not only in the 2022 financial statements, but also in the financial reporting for 2019, 2020, and 2021. In the fourth quarter of last year alone, 110 billion Swiss francs in deposit withdrawals were also confirmed.
12/12 Currently, #CreditSuisse is falling further as news breaks that Saudi Arabia will not provide additional support. It's time to revisit the risk management aspects of your portfolio. Image

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More from @Eric_the_Strait

Mar 15, 2023
Beginning of transition from Tradiional finance to Crypto?

1/ The recent closures of several US banks due to bank runs could be an opportunity for the crypto market. As traditional finance shows its weaknesses, crypto emerges as a strong alternative.
2/ These closures highlight the importance of having a diversified portfolio that includes crypto assets. With their rising popularity, crypto assets can provide a reliable investment opportunity.
3/ The closures of Silvergate, SVB, and Signature Bank reveal that traditional banking has significant vulnerabilities. With crypto, investors have access to decentralized financial systems that are immune to bank runs and other financial risks.
Read 6 tweets
Mar 15, 2023
Major Banks Open to Serving Crypto Clients Despite Banking Failures

1/ Despite recent banking failures, major banks like Santander, HSBC, and Deutsche Bank are still open to serving crypto clients, according to a report by Digital Currency Group (DCG)
2/ The report highlights that some banks are now more willing to engage with the crypto industry due to increased demand from clients. Banks in Asia and the Middle East are said to be particularly friendly towards crypto.
3/ Banks are offering services such as custody, trading, and lending to crypto clients, which is a positive sign for the industry's growth and adoption.

However, banks are still cautious about regulatory risks and the potential for money laundering and fraud.
Read 5 tweets
Mar 14, 2023
What is FEVM?

1/4 The #FEVM is an implementation of the #EVM on the #Filecoin network. It allows developers to port EVM-based smart contracts onto the #FVM, where they are called actors, and is compatible with #EVM development tools such as #Hardhat, #Brownie, and #Metamask.
2/4 The #FEVM is designed to allow existing smart contract developers familiar with the #EVM ecosystem to quickly begin porting their existing applications and writing new applications on top of the #FVM.
3/4 Once Milestone 2.2 of the #FVM roadmap is complete, developers will have the option to deploy actors on either the #FEVM or native #FVM, depending on their performance requirements and tooling preferences.
Read 5 tweets
Mar 14, 2023
New but outdated defi, ve(3,3) design

1/ Andre Cronje’s ve(3,3) design is a new #DeFi token economy that combines Olympus DAO’s (3,3) design with Curve’s voting escrow token (ve). What does it mean and why is it important?
2/ Olympus DAO’s (3,3) design encourages users to stake or bond their tokens instead of selling them. This creates positive feedback loops for the token price and the protocol treasury. Staking and bonding are both rewarded with more tokens.
3/ Curve’s ve design incentivizes users to lock their tokens for long periods of time (up to 4 years!) in exchange for voting rights and trading fees. This reduces token supply and aligns the interests of token holders and liquidity providers.
Read 7 tweets
Mar 13, 2023
#SVB Bankruptcy and $USDC Unpegged Incident

1/7 #Circle, an issuer of $USDC, announced on Mar 10th that #SVB, where they held their funds, had gone bankrupt. This leaves $3.3B collateralized in $USDC locked up. Upon this news, $USDC plunged more than 10%. ImageImage
2/7: However, #Circle had previously disclosed the amount of reserve it held in $USDC, and currently, only 8.2%($3.3B out of $40B) was tied up in #SVB.
3/7: By using the #FDIC recovery process as a guide, it's expected that the payout rate will be around 94%, indicating an estimated loss of approximately $200M.
Read 7 tweets
Mar 2, 2023
Shibarium's Massive Rising Power, $SHIB

Shibarium Websie is now live!

1)

The burn rate of $SHIB increased by 1700% in just one day on Feb 27 after Shibarium senior developer Shytoshi Kusama tweeted a link to the company's website.

#shibarium Image
2)

Shibarium is an L2 network that offers increased transaction speed and security at a lower cost for the $SHIB ecosystem ($SHIB, $LEASH & $BONE).

Players can own, purchase, and sell digital assets in games and the metaverse using Shibarium.
3) Shibarium’s GAS, $BONE

$BONE is a native token paid for Shibarium's network fees and rewarded to Validators and Delegators.

$BONE must be paid in proportion to the resources needed to run a particular task, and $BONE paid is rewarded to Validators and Delegators. Image
Read 9 tweets

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