Galaxy Brains Cambrian Stablecoin Explosion is Coming with Luca Prosperi
Oct 16, 2025
Luca Prosperi, CEO of MZero and stablecoin expert, and Beimnet Abebe, a trader at Galaxy Trading, delve into the recent flash crash and its ties to rare earth exports. They discuss the implications of the GENIUS Act for the future of stablecoins, predicting a radical change in money distribution. Luca highlights the importance of transparency in DeFi and the risks associated with stablecoin design, while Beimnet provides insights on Federal Reserve policies and geopolitical tensions impacting markets. The duo shares their vision of a booming stablecoin ecosystem.
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Geopolitics Can Trigger Crypto Turmoil
- The tariff tantrum and rare-earth export controls created acute market stress that propagated into crypto via thin after-hours liquidity.
- Beimnet Abebe warns geopolitical escalation could force sharper market moves and long-lasting economic costs.
Anticipate Fed Balance Sheet Actions
- Watch Fed reserve operations closely because a halt to QT or use of the standing repo facility is effectively QE.
- Prepare for front-end liquidity injections even if the Fed labels them as liquidity management.
Flash Crash Exposed Hidden DeFi Balance Sheet Risk
- The October 10 flash crash exposed embedded leverage and opaque risk transfers across DeFi and CeFi.
- Luca Prosperi argues DeFi reveals messy, previously hidden balance-sheet risks in open view.