Court Reportedly Orders Liquidation Of Crypto Hedge Fund Three Arrows Capital, Threatening More Market Turmoil
ForbesJUN 2022
The Spin
Narrative A
We are still in the early stages of "Crypto Winter." The total market value of all crypto assets has shrunk to under $1T - from a high of over $3T just a few months ago. Many lower-level exchanges are already insolvent at these prices, they just haven't admitted it yet. As in most cases of financial collapse, the burden will fall most heavily on retail investors.
Narrative B
Some players in the crypto space were clearly over-leveraged and under-capitalized, but one person's tragedy is another's profit. Investment banking giant Goldman Sachs has been in talks with investors to raise capital for a fund to snatch up distressed crypto assets at a discount. The smart money sees this crisis as an opportunity.
Metaculus Prediction
There's a 6% chance that Coinbase will file for bankruptcy protection in 2022, according to the Metaculus prediction community.
