Following the three-week-long market collapse, Raoul Paul, a well-known crypto supporter and the founder and CEO of Global Macro Investor and Real Vision Group, complimented the more significant cryptocurrency sector.
Raoul Paul praised the digital currency ecosystem’s resiliency and capacity to avoid collapsing after over $1.02 trillion was lost due to inadequate regulation failing to prevent liquidation shocks. Following the market’s three-week fall, Paul commended the more significant bitcoin business.
Over the last few weeks, the cryptocurrency sector has been hammered from all sides. The market has waded through negative news since the Xinjiang floods, which significantly impacted Bitcoin mining, to Tesla retracting its plans to accept Bitcoin payments.
Chinese officials have prohibited crypto transactions for the country’s financial institutions, which is the heaviest blow in years. As conversations on energy conservation become a priority, the Asian behemoth has emphasized intentions to send miners packing.
The global crypto market value fell from a peak of $2.6 trillion to a low of $1.5 trillion due to these episodes of negativity. Despite this, Raoul Paul stated that none of the big players were affected by the volatility.
“Crypto had a major, major VAR-shock test, and nothing happened. Leverage liquidation was offset by over-collateralization. No one was left holding the baby. No firm went under. The Fed didn’t need to step in. Defi didn’t break and carried on near normal. There were no daisy chains of collateral losses. There was no collateral pressure. Stablecoins remained stable. A few exchanges went down for an hour or two. No big exchange losses occurred, no need to mutualize losses either. No protocol failed. No firms needed rapid funding.”he said in a Twitter thread.
According to Raoul, the crypto economy has no systemic risk as compared to traditional finance because of its resiliency. On the basis of these, he proclaimed the sector to be an anti-fragile financial system that does not collapse under pressure, where asset ownership is transparent and losses are not shared with taxpayers.
Many industry heavyweights, including Mark Cuban, Ray Dalio, Michael Saylor, and others, helped cushion the fate of crypto by publicly disclosing their investments in digital assets during the industry’s most difficult period in recent years.