Bits + Bips: Crypto Investing Is About Managing Risk, Not Chasing Upside - Ep. 978

Bullish:

• $STABLES - Stablecoins present an enormous opportunity for service providers as USDC has become widely adopted despite past centralization concerns, with regulatory clarity from the Genius Act driving further growth potential

  • “We think it's a enormous opportunity for us to provide those kind of services and those tools to all stablecoin insurers we are speaking with most.”

    Sebastian·51:52

  • “No one cares. Everyone is using USDC more or less.”

    Shehan·50:02
• $COIN - Coinbase's DeFi infrastructure is seeing strong adoption with their USDC lending vault reaching $400 million

  • “The vault that where people can lend USDC on the Coinbase app is currently $400,000,000 Just crossed 400,000,000 today.”

    Sebastian·25:55

Bearish:

• $STREAM - Stream Finance suffered an $80 million loss with no transparency or postmortem on the failure, highlighting risks in unregulated DeFi lending protocols

  • “Stream Finance lost 80,000,000. I'm not sure there was any postmortem on how and why.”

    Sebastian·40:34
• $PRIVATECR - Private credit funds are showing vulnerabilities with recent 2% markdowns due to exposure to fraud cases like First Brand

  • “They marked down the fund by 2% recently... the underlying fund like many private credit had exposure to first brand which was one of the blow up and fraud this year.”

    Sebastian·44:12