1. PixelPlaygroundHome
  2. Metaverse Insights

Circle Freezes Redemption, USDC Bulls R/R Benefits

• Metaverse Insights • 129 views

It is reported that encryption analyst 0xHamZ said on social media that Circle has frozen redemption to a large extent, which means that the r/r of USDC bulls …

Circle Freezes Redemption, USDC Bulls R/R Benefits

It is reported that encryption analyst 0xHamZ said on social media that Circle has frozen redemption to a large extent, which means that the r/r of USDC bulls is very good, because you will not have survival bias due to people’s departure (in percentage terms, the hole will become larger). The best way to deal with this situation is to use the borrowing/lending platform and carefully increase the leverage to $0.60.

Encryption analyst 0xHamZ: Circle has largely frozen redemption

Analysis based on this information:


According to a recent social media post by encryption analyst 0xHamZ, Circle has frozen redemption to a large extent. This means that the risk/reward ratio (R/R) for USDC bulls is very good because there is no survival bias due to people leaving the market. In percentage terms, the hole will become larger.

To understand the significance of this announcement, it is important to first understand the key players involved. Circle is the issuer of the USDC, which is a stablecoin that is pegged to the US dollar. Stablecoins are becoming increasingly popular in the cryptocurrency market as they provide a more stable investment option compared to the highly volatile Bitcoin and other cryptocurrencies.

Redemption refers to the process of converting USDC back to US dollars. Circle’s decision to freeze redemption means that traders cannot cash out their USDC holdings. This has a direct impact on the risk/reward ratio for USDC bulls.

The survival bias that the analyst refers to is an important concept in investment analysis. It occurs when investors only consider the performance of the assets that have survived a particular period, ignoring the performance of assets that have been wiped out of the market. In the case of Circle freezing redemption, survival bias will not be a factor because investors will not be able to leave the market, making the percentage change in value more significant.

The analyst recommends that the best way to deal with this situation is to use the borrowing/lending platform and carefully increase leverage to $0.60. In other words, traders should borrow money to increase their buying power and take advantage of the situation. However, this approach is not without risk, and traders must be careful not to overextend themselves.

In conclusion, Circle’s decision to freeze redemption has significant implications for the USDC market. USDC bulls stand to benefit from the increased risk/reward ratio, but traders must also be careful not to overextend themselves. The borrowing/lending platform is one way to take advantage of the situation, but traders must be cautious in their approach.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/8053/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/12/2023 15:59
Next 03/12/2023 16:21

Recommended articles