Graph on Cryptocurrency Contagion from Terra LUNA to FTX
nftjedi
For those of you who are wondering whether the high-profile bankruptcies of Three Arrows, Voyager, Celsius, FTX, Alameda Research, and BlockFi are related, the short answer is: yes.
Stacy Elliott of Decrypt has provided the best explanation. (See here.)
There is a Cryptocurrency Contagion. Yes, it’s like the spread of COVID. As risky loans or deals turn bad or suffer margin calls due to the fall in Bitcoin or other cryptocurrency used as leverage or collateral, the financial distress may spread between related companies or among different companies using the same type of leverage on cryptocurrency.
We’ve compiled a graph above to show you how Cryptocurrency Contagion is occurring in 2022. Please feel free to download.
