$STRC Bulls and $SATA liquidated by liquidations

CEO of Strive, Matt Coul, explains that this is not a credit problem, but a cascade of liquidations due to leverage.

Strive is building credit instruments around BTC reserves and a dividend model.

Coul says that the reserves for dividends have not disappeared, and fundamentally, nothing has changed for the company.

The problem was that part of the market entered these instruments with leverage, and during a sharp move, positions began to be forcibly closed.

Because of this, the decline looked like a credit stress, although, according to him, it was precisely a technical wipeout of overheated positions.

After the spill, strong demand appeared, and assets quickly rebounded from the lows.

For the digital lending market, this is a harsh lesson: even if the balance is in order, leverage can cause strong volatility.