The Wolf Of All Streets Liquidation Hunting, Wash Trading & 50x: Inside Crypto’s Risk Machine | CryptoTownHall
Sep 4, 2025
Dave Weisberger, CEO of CoinRoutes, dives into the complexities of the crypto market. He discusses Coinbase's controversial introduction of 50x leverage, warning about the potential gambling mentality it fosters. The conversation also explores issues of trading volume authenticity on exchanges and the rise of decentralized gaming networks. Weisberger highlights current market dynamics and the risks of leveraged trading, focusing on how these trends may affect investors and the future of crypto asset tokenization in a rapidly evolving landscape.
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50x Leverage Is A Gambling Magnet
- Coinbase offering 50x leverage signals a race to attract retail gamblers and compete with platforms like Binance and Hyperliquid.
- High leverage turns traders into gamblers and enables strategies that hunt liquidations, increasing systemic fragility.
Avoid Excessive Leverage
- Avoid using extreme leverage because tiny volatility (seconds-long moves) can liquidate positions and erase gains before you realize them.
- Use modest leverage and risk controls to survive rare tail events and capture long-term upside.
Reported Volume Varies By Venue
- Major regulated centralized exchanges (Coinbase, Kraken, Gemini, Bitstamp, Robinhood) report real volume, while smaller venues and some altcoin markets see wash trading.
- Wash traders now use more sophisticated tactics like account-splitting and participation-algorithm probing, making detection harder.
