Does that mean they're killing it now? As in reaping gains? I trust you to know more about this than I do, but it seems when price goes south they usually get effed somehow
Ok so you see. For example, let's call this btc lending company EZ; EZ partners with several cash companies such as YodlBase and many more. All these companies that provide cash to EZ loans have access to the interest produced from the loans but also have access to EZ's btc balance sheet.
Then Yoldbase and all the cash providers (cantor Fitzgerald looking at you) tap into the futures market using EZ balance sheet. Say EZ has a very charismatic young dude saying I'm a pleb, trust me brah; and they have over 50K btc locked in loans. Now say EZ corp works with 10 lenders, each leander has access to the 50K btc balance sheet (not the bitcoin but the balance sheet) and each puts shorts (they call it market making) on those 50K btc; meaning out of nowhere, a 500K btc short futures is weighing down on the price. And that's assuming the lenders have a leverage of 1:1; they could be 10:1 or 100:1
Meaning; there could be 50 million btc or 100 million btc shorts out there
😅😅😅🫠
Then Yoldbase and all the cash providers (cantor Fitzgerald looking at you) tap into the futures market using EZ balance sheet. Say EZ has a very charismatic young dude saying I'm a pleb, trust me brah; and they have over 50K btc locked in loans. Now say EZ corp works with 10 lenders, each leander has access to the 50K btc balance sheet (not the bitcoin but the balance sheet) and each puts shorts (they call it market making) on those 50K btc; meaning out of nowhere, a 500K btc short futures is weighing down on the price. And that's assuming the lenders have a leverage of 1:1; they could be 10:1 or 100:1
Meaning; there could be 50 million btc or 100 million btc shorts out there
😅😅😅🫠
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