Deleveraging and Regulatory Challenges in Cryptocurrency

This chapter explores the concept of deleveraging in the cryptocurrency market, focusing on the risks associated with high-leverage investments and the insolvency issues faced by firms like Celsius. It highlights the regulatory challenges in managing the burgeoning cryptocurrency landscape, questioning the effectiveness of self-regulation and the current oversight by regulatory bodies. Additionally, the chapter draws parallels to past financial crises, underscoring the complexities of liquidity and market stability in decentralized finance.