X @𝘁𝗮𝗿𝗲𝘀𝗸𝘆

Crypto Lending Platform & Mining Pool Risk - Babel Finance and Poolin's centralized risk was that they speculated in cryptocurrency with user assets and continued to add leverage without informing customers of the risks [4] - Centralized institutions conceal the facts, and retail investors do not know when something goes wrong, they are robbing Peter to pay Paul until they can't hold on and are exposed [4] - The collapse of Terra in May 2022 directly evaporated $20 billion and Luna also vanished, about $40-50 billion of base currency disappeared [2] Crypto Investment & FOMO Sentiment - In 2021, the scale of Babel Finance reached a maximum of $7 billion [1] - At that time, the annualized return of crypto "risk-free arbitrage" was 40%-50% [2] - From the end of 2020, the supply of USDT was about $20 billion, and by April-May 2021, it had reached more than $60 billion, indicating that twice the amount of funds had entered the market for arbitrage transactions [2] Mining Pool Operation & Liquidity Crisis - Poolin was the world's third largest mining pool at the time [3] - Poolin's CTO, Li Tianzhao, was also the head and core developer of Bitmain's BTC.com technical team [3] - Poolin's cash withdrawal difficulties were also affected by the LUNA crash [4] - Before the accident, the customer service also responded that the Poolin mining pool and wallet were operating normally and would not run away, and the mining users could see that the income was paid normally [5] - Due to the Ethereum merge, many users decided to withdraw ETH because they could no longer mine ETH or were bearish on ETH2.0, so Poolin experienced a run and a liquidity crisis [4]