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Trump's crypto advisor: The credit crisis in DeFi lending is evolving into a crypto liquidity crisis, and there's a very high likelihood that it could spread to CeFi.
Golden Finance reports that David Bailey, a cryptocurrency advisor to Donald Trump, stated that the credit crisis in decentralized finance (DeFi) lending is evolving into a liquidity crisis in the cryptocurrency market. If collateral cannot be provided to cover margin calls or hedging strategies fail, the risk could spread from DeFi to centralized finance (CeFi). A second wave of the crisis may arrive around October 10. While we hope the situation doesn’t escalate to that point, caution is still necessary to avoid counterparty risks.