Adding a black swan, a historical event: the USDC de-pegging incident on March 11, 2023, was triggered by the collapse of Silicon Valley Bank, leading to a severe run on USDC and causing a chain reaction of panic...
I hope that such large black swan events won't occur in the future... Everyone should be cautious in asset allocation; any asset you hold (not just crypto assets) could have significant single-point risks. Allocate your positions wisely and stay robust.
After experiencing this black swan event, I've come to realize a profound truth about cultivation.
Do not engage in super circular loans; even if it's just borrowing, you must have a deep respect for risk. This wave of liquidations is due to someone smashing $USDE circular loans, resulting in a chain reaction that caused market makers to go bankrupt.
I also borrowed over 1000 $BNB, thinking I could earn interest on stablecoins when the bull market comes, but yesterday when $BNB dropped to over 800, I almost lost everything, luckily it was delayed.
Don't be fooled by how altcoins surge; once liquidity collapses, 99% can instantly crash, easily leading to a total loss of paper wealth.
The true underlying logic of a bull market is to always have cash flow on hand, to have a portion that can respond to black swan events like USDT and USDC.
This round of deleveraging has been brutal; perhaps after half a month of recovery, we will see the next round of explosive bull markets.
In the future, I need to have a greater respect for the market. When trading, I must pay attention to these top traders:
@0xRay518 @daidaibtc @dotyyds1234 @Vida_BWE. They made tens of millions to over a hundred million RMB this time, while I learned the importance of cash flow.
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