00:00So, Lauren, we've had a couple of days to kind of see the dust settle.
00:03What are your big takeaways from these forced liquidations, this horrible sell-off?
00:07Yeah, you know, the sell-off really exposed some fragility in the market, the market structure.
00:11Some of these trades were automatically liquidated.
00:14It wasn't like the traders chose to.
00:16And in particular, you know, Bitcoin, Ether, familiar names, but some of the altcoins really took it on the nose.
00:22I mean, just huge drops in them and really make investors wonder whether they should even be in that area of the market at all.
00:28What are people saying about whether those smaller altcoins can survive what happened this past weekend?
00:33Yeah, I mean, there are some doomsayers that just think the market won't come back.
00:37But, you know, people say that sometimes and it does come back.
00:40So there's a lot of enthusiasm around it from some of the true believers in kind of the wacky coins.
00:45But I do think that some of the market structure issues are going to stay with us for a while.
00:50And there's talk in Washington about making potential changes as well.
00:53So I don't think this is the end of the story.
00:55I guess there's a lot of question about where is the structural support for some of these smaller altcoins, these tokens, where maybe there's not a fundamental reason to be in them.
01:04Yeah, that's exactly you hit it on the head, Scarlett.
01:07I think that's a big issue with it.
01:09It's also, you know, when there's not a lot of liquidity in those coins compared with Bitcoin, you're naturally as a trader going to be more at risk.
01:15So investors need to keep that in mind.
01:18Here's the other thing. We chalk it up to President Trump's threat of these massive tariffs on China, which he later revealed to be 100 percent on Chinese imports and this overall flight out of risky assets.
01:29We certainly saw stocks tumble.
01:31Was it just that or was there something specific within the crypto universe that caused the sell off of this scale?
01:38Yeah, I really think it was some of these dynamics where margin calls in crypto are not the same as margin calls in other traditional markets.
01:45How so?
01:46They don't really ask you, do you want to put up more collateral?
01:49They just get automatically liquidated.
01:51And so some of these positions that people might have wanted to hold on to, even if it costs a lot of money, just got wiped out.
01:57And that's where you see the record liquidations on Friday and Saturday.
02:01I also saw in your reporting that Binance said it's changing the way that it prices some tokens and that may have contributed to some of the price action.
02:08Yeah, there were some issues with pricing as well.
02:11Binance made some statements about that.
02:12I believe Coinbase did also.
02:14I mean, they were getting widespread criticism, you know, publicly on these forums and social media about what had happened with traders not able to see even what the pricing was or getting incorrect prices.
02:25So the exchanges had to go back and repair some of that damage that they caused.
02:28OK, thanks.
02:29Yeah, I'm going to go back and repair some of those.
02:29Well, I mean, they were so happy.
02:29Well, you know what, you know, trying to be.
02:30Well, I need to go back and repair some of these forms.
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