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Contagions and Cascading Liquidations in Cryptocurrency

Crypto Critics' Corner

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The Last Contagion Risk

The final contagion risk is the bleeding in to actual markets that this knock on effect could present if enough liquidity and volume dries up from crypto currency markets. So much of the value position ends up being self referential in that same kind of way, where it's valuable for as long as it's believed to be valuable. And that when things get bad, when liquidity draws out, that faith is harder to maintain.

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