...by Daniel Szego
"On a long enough timeline we will all become Satoshi Nakamoto.."
Daniel Szego

Wednesday, November 16, 2022

CeFiRun and CeFiBankRun

CeFiRun or CeFiBankRun is an economic process where custmers loses trust in custodial crypto service providers with non-transparent balance sheets (typically characterized as CeFi or CeDeFi). Losing trust can result a mass withdrawal of tokens for which some providers are not prepared causing a freeze in customer funds (due to custodiality it is possible). Freezing publicaly funds at one crypto service provider might cause a panic on the market resulting that customers try to withdraw funds from all the similar providers resulting eventually in an escalating short-term economic collapse of the given segment. 

#CeFiRun #CeFiBankRun