The #crypto community's still buzzing about the October 10th crash, and Delphi's co-founder is throwing his weight behind Tom Lee's theory 🤑. The idea? A market maker suffered a financial hit, and the exchange had to sell off assets to cover losses, causing indiscriminate selling 📉.
THE DUMPING TO COVER LOSSES TACTIC 💸
The thinking is that the exchange, faced with a potential lawsuit, had to sell off its accumulated profits to cover the shortfall. This selling was continuous and indiscriminate, targeting anything with liquidity - a classic "dumping to cover losses" tactic 🚨.
BUT WHY DIDN'T ALTCOINS RECOVER? 🤷♂️
Initially, it seemed counterintuitive. If market makers suffered losses, they'd need to buy back the altcoins they sold, right? But altcoins didn't bounce back 🔴. Delphi's co-founder suggests market makers knew exchanges would sell BTC, so they waited for altcoins to drop before buying back, making a profit from the arbitrage difference 💰.
THE MARKET MAKER'S PLAYBOOK 📚
Here's the play:
- Market makers know when exchanges finish selling BTC
- They wait for altcoin prices to drop before buying back
- They profit from the arbitrage difference, regaining their position and making a tidy sum 💸
IS THE SELLING PRESSURE OVER? 🔄
Delphi's co-founder thinks the indiscriminate selling pressure might be ending, and a rebound could be near 📈. But it's essential to remember - this is just speculation based on rumors, with no confirmation yet 🤔.
THE REAL CAUSE OF THE DECLINE? 🤔
Stories about "quantum" or "Japan" might spread easily, but Delphi's co-founder isn't convinced they're the real cause of the decline 🚫. Instead, he points to the indiscriminate selling pressure as the likely culprit.
Stay informed, stay vigilant! 🔍
#Crypto #October10thCrash #TomLee
