13 days ago 1 min read

3AC Founder: Crypto Market's Biggest Failure Is Conventional Concepts Like "Shadow Banking"

three arrows capital-shadow banking-crypto current-blocknews

The 3AC Founder claimed that one of the primary causes of these errors is the proliferation of conventional financial concepts, such as "shadow banking" and the "internalization of procedures," in the financial sector.

Three Arrows Capital (3AC) founder Zhu Su recently addressed some of the reasons behind some recent errors in the bitcoin market on Twitter. The 3AC founder said he agreed with how the bitcoin market is currently operating. Since there is no intraday market for funding the significant daily settlement imbalances that arise inherently in the system, it is claimed that cryptocurrency investors are facing a financial catastrophe. On the other side, crypto markets handle this far better.

The founder of 3AC, Zhu Su, responded to the comment on Twitter by claiming that the majority of recent errors in the cryptocurrency industry were caused by the adoption of antiquated concepts like "shadow banking" and "internalization of processes," that the next bull market will be fueled by investors who understand these problems, and that the underlying crypto infrastructure is a brand-new paradigm.

Nonetheless, some cryptocurrency specialists assert that, with a few modifications, these outdated ideas can still be applied in the world of digital assets. Others have suggested changing the definition of "shadow banking" to include the decentralized lending platforms that have gained popularity in the cryptocurrency space. The idea of internalizing processes can also be used in the blockchain environment, where smart contracts can automate a variety of formerly manual tasks.

It is obvious that the fusion of traditional banking and cryptocurrency is a popular topic in the industry. Some claim that traditional ideas have no place in the world of digital assets, but others argue that they may be modified to address the unique challenges and opportunities presented by cryptocurrencies and blockchain technology. Lastly, the capacity of investors and innovators to strike a balance between the old and the new, incorporating the best practices of both sectors to create a more strong and resilient financial system, will decide the success of cryptocurrencies.

Great! You’ve successfully signed up.
Welcome back! You've successfully signed in.
You've successfully subscribed to Coin Aquarium.
Your link has expired.
Success! Check your email for magic link to sign-in.
Success! Your billing info has been updated.
Your billing was not updated.