“chewing more than you can chew: The complexity of cryptocurrency markets”
In recent years, cryptocurrency has become popular as the value of Bitcoin has reached high astronomical and decreased downs, which shake the earth. However, the complex market dynamic network risks under the surface.
One of these dynamics is the liquidation where investors who quickly sold their cryptocurrencies are pressed into worthless property. This phenomenon has become increasingly widespread as merchants go to their positions in the hope of falling.
According to the latest data, a number of investors about the popular cryptocurrency exchanges have faced liquidity problems by selling their currencies at unfavorable prices. As a result, some were forced to pay for their property to meet margling calls or cover their losses.
The situation is even more complicated by the fact that many traders use a margin to increase their profits, which can quickly cause catastrophic loss if the market contradicts them. “It’s like trying to get fish with your own hands,” says the merchant who wants to stay anonymously. “You think you’re smart, but it’s definitely just a game on the market.”
Despite these challenges, Binance has worked hard to improve its liquidity services and reduce the risk of negotiations with cryptocurrency. The Exchange also implemented several measures to ensure that investors were protected in the event of a settlement.
However, experts warn that the situation is not at risk. “We have seen cases where investors have lost thousands of dollars due to bad time on the market,” says a financial analyst. “This is a big risk game and anyone can make mistakes.”
Meanwhile, the art world explored the equivalent of its cryptocurrency – crypt. This new medium has become an alternative to traditional digital art formats such as blockchain based NFT.
Cryptoart allows artists to create exclusive digital assets stored in blockchain, which gives the safe way to authenticate and verify the ownership of these virtual artwork. Currently, well -established players, such as Opensea and Rible, are dominated by the market, but new participants also make waves.
A great example is the Ape Yacht Club Bed (Bayc), a project that attracted a great deal of cryptocurrency space. Bayc, launched in 2021, has an exclusive and collectible Limited Edition dog mascot, which is stored in Blockchain Ethereum.
Cryptoart appealing is the ability to democratize access to art assets and create new artists’ income flows. “It is interesting to see how this technology develops,” says Mark Karlès, CEO of the European Central Bank. “We see significant interests of artists who want to experience digital formats.”
As cryptocurrency continues to gain popularity, we can expect Cryptoart from Cryptoart to see more innovative apps. But so far, it remains an exciting space worth watching.
Sources:
- Binance liquidity issues
- In an interview of a financial analyst
- Openea and a rare market analysis
- APE APE APE Yacht Press (Bayc)