Andrei Grachev, managing partner at DWF Labs, has highlighted the ongoing 'Liquidity Wars' in the cryptocurrency market, pointing to over $22 billion in liquidations over the past month. Grachev criticized the industry's dependence on synthetic dollars and leveraged strategies, describing them as misleading and risky. He warned that these instruments, unlike stablecoins, could collapse under stress, leading to significant deleveraging.
In response, Grachev announced a strategic shift for Falcon Finance, where he is a founding partner. The firm plans to end special marketing deals and reduce token-based incentives, focusing instead on institutional clients and the adoption of real-world assets. Grachev stressed the importance of protocols prioritizing balance-sheet strength and risk transparency over short-term growth metrics.
DWF Labs' Andrei Grachev Warns of $22B Crypto Liquidations Amid 'Liquidity Wars'
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