Another one bites the dust!
The same tired line is being trotted by another CeFi lender, "Dear users, we regret to inform you that we will be halting withdrawals." Further highlighting systemic issues with "yield" offerings
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Hodlnauts: Prepare to hodl
Centralised Finance (CeFi) lender Hodlnauts has issued a statement via Twitter that they will be halting withdrawals, deposits and token swaps effective immediately.
In their statement, they also fired off the usual PR manufactured line as to what brought this decision on. “We would like to reassure you that this difficult decision was taken for us to focus on stabilising our liquidity and preserving assets, while we work to find the best way to protect our users’ long-term interests.”
The Morning Note is far too brief to cover the systemic problems involved with “yield bearing products” within the crypto space but luckily for our readers, we already covered this in our latest blog post, If you don’t know where the yield is coming from, you are the yield.
After reading the important education piece via the link above, it’s also important to note that we here at Stormrake provide you a dedicated cryptocurrency broker and although we can’t give you advice personal advice, please call or email us if you’re ever unsure about how a certain product offering works within crypto, we would be happy to give you some resources and education to avoid common pitfalls.
Chainlink throws support behind ETH Merge
We will be covering a more detailed breakdown of the “Fork Wars” as ETH miners are looking to fork the ETH chain as it heads into the merge to protect their business model. You can subscribe to our Thunder Trading updates HERE but for now, what’s important to note is that Chainlink, an oracle protocol built on top of Ethereum will only be supporting the main ETH beacon chain as it transitions to PoS.
Transmission Protection Instrument
It’s critically important to look into what the Central Banks across the world are doing and to parse their endgame from verbose statements intended to confuse the everyday person. Fear not though our intrepid crypto investor, for we have dived into the cesspool that is the ECB press releases and found a new way for them to inflate away EU member states purchasing power.
A few short weeks ago the ECB Governing Council today approved the Transmission Protection Instrument (TPI) and in summary, it gives the ECB the sole discretion to determine whether the market value of a member state’s bonds is unwarranted given certain macroeconomic fundamentals. If such a situation occurs, then the ECB is empowered to purchase any member state’s bonds in an unlimited amount.
Basically a new money printing program, if and when deployed will not bode well for European companies with foreign currency debt and it will further reduce the everyday persons’ purchasing power but will cause hard assets such as Bitcoin to rise as the denominator weakens.
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