A major cryptocurrency selloff in June 2022 has sparked more interest in Bitcoin (tumbling below $20,000. The ongoing crypto winter has been largely attributed to the crisis of algorithmic stablecoins and the subsequent catastrophe in cryptocurrency lending as crypto lenders ran out of liquidity.
“Every participant needs to respect the risks involved and the fact that there are no bailouts in the space, so if a borrower fails to repay, a lender has to accept their loss. There is no risk-free yield, and often the yield is not worth the risks,” Trezor crypto analyst Josef Tětek said.
