Banking bingo or what? ❌

The rise of decentralization

March 27, 2023

GM Baos,

I hope you had an incredible weekend filled with lots of yummy food ✨

Today, I'm VERY excited to welcome Bluejohn as our guest writer! In this Dumpling, he's going to cover what's been going on with all these beeeg banks 😵‍💫

How many more failures can we take? 

The domino effect in the banking world has just begun. Last Friday, the stock price of  Deutsche Bank (arguably the largest German Bank) went down a whopping 8.5% by the end of the day. If we consider the whole trading session, it touched the 14% loss mark, which is insane!

Despite all the assurances of a healthy cash flow and their announcement regarding early redemption of tier 2 bonds worth $1.5b, the stock still came crashing. It’s not only them —  but the entire index of the top European banks is down 3.8% by the end of the day. 

🤯 It’s like people are playing bingo to find out which bank to short next, and here I thought crypto was the only bubble people were waiting to pop. 

So where is the money flowing to?

Money is starting to flow in safer assets, such as USD (arguably a historically safe currency) and gold. Although all of this is part of a normal economic cycle, we have to note that there are other options now, like DeFi 😎

Imagine a decentralized world with a finite currency built on a smart contract. That’s part of what crypto has to offer. This is a world that won’t allow governments to print more money, therefore no oversupply and no inflation. Picture a machine that’s doing processes perfectly every single time. That’s the smart contract whose “perfection” eliminates human error.

The problem is that it’s idealistic and a big change that can’t immediately be implemented. But more people are starting to understand what crypto’s goal really is. 

I’m extremely excited to see how everyone will take in our perspective on things, and who knows? Maybe people start to treat crypto as a safe asset and make money flow to it too.

Praying for tomorrow, staying for the vision. See you all next week!

— Bluejohn 

Somehow this never gets old 🥴

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Hi, it's me again. Thanks for reading today's Dumpling, and don't forget to share with a fren 💙

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