Owners borrowing against their own tokens can result in liquidation risk, Alex Krüger warns

Traders Union
All News
Market Voices
Lending against own token raises risks

Top Stories

Editors' Picks

Crypto

Financial News

Currencies

Market Voices

Companies

Regulators

Central Banks

Daria Chernytska

10.04.2026

Owners borrowing against their own tokens can result in liquidation risk, Alex Krüger warns — Lending against own token raises risks

Alex Krüger highlighted a tactic in the crypto sector where protocol owners supply their own tokens to lending platforms they control, then borrow as many dollars as possible against those tokens.

Krüger suggested that this approach carries significant risk, as a sharp drop in token value could lead to collateral liquidation, potentially sending the protocol’s value to zero.

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

Krüger has previously urged caution, advising investors to prepare to act decisively when market conditions improve. He also compared the Trumps’ $1 billion market capture to Pump fun’s token extraction via SOL sales and ICO. His commentary often highlights risks and major movements within the digital asset sector.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

Did you like the article?

Editor's Picks for You

FIFA World Cup on blockchain: Where football meets crypto

By Oleg Tkachenko
21 hours ago

FIFA World Cup on blockchain: Where football meets crypto

Editors' Picks

Aliens, Satoshi, and Bitcoin: How the extraterrestrial theory emerged

By Pavlo Kot
Yesterday

Aliens, Satoshi, and Bitcoin: How the extraterrestrial theory emerged

Editors' Picks

Blockchain nation in crisis: How a power struggle split Liberland

By Pavlo Kot
20.06.2026

Blockchain nation in crisis: How a power struggle split Liberland

Editors' Picks

All Editors' Top Picks

Latest Alex Krüger News

Alex Krüger: Ethereum bulls may see future value from holding ETH over selling for ticket

By Daria Chernytska
5 hours ago

Alex Krüger: Ethereum bulls may see future value from holding ETH over selling for ticket

Market Voices

Marketing of STRC likened to HEX tactics, Alex Krüger notes

By Daria Chernytska
18.06.2026

Marketing of STRC likened to HEX tactics, Alex Krüger notes

Market Voices

Alex Krüger: FOMC press conference losing volatility role in financial markets

By Mikhail Vnuchkov
18.06.2026

Alex Krüger: FOMC press conference losing volatility role in financial markets

Market Voices

All Alex Krüger News

Oleg Tkachenko
21 hours ago

FIFA World Cup on blockchain: Where football meets crypto

Pavlo Kot
Yesterday

Aliens, Satoshi, and Bitcoin: How the extraterrestrial theory emerged

Pavlo Kot
20.06.2026

Blockchain nation in crisis: How a power struggle split Liberland

Eugene Komchuk
19.06.2026

Shifting priorities: Governments back mining as businesses turn to AI

Mikhail Vnuchkov
18.06.2026

Intel's comeback: Apple, Trump and the AI bet

Andreas Kristo
2 min ago

House committee to examine Clarity Act impact on finance, Scott Melker notes

Daria Chernytska
1 hour ago

Alex Svanevik: $1,000 USDC giveaway continues for nine more weeks

Hlib Chabaniuk
1 hour ago

Apollo private credit fund hit by 17% redemption requests, Christophe Barraud notes

Ashutosh Sureka
2 hours ago

Many silver holders may exit soon, Peter Brandt warns

Igor Krasulya
2 hours ago

Credit risk premium now at 1.65%, Yuriy Matso notes

Weekly Top Bonuses

Capitalcore

up to $2,500
deposit bonus for all clients

Your capital is at risk.

Top News

Eugene Komchuk
15 min ago

SpaceX sheds $400 billion in market value after record IPO

SpaceX sheds $400 billion in market value after record IPO

Olga Shendetskaya
15 hours ago

ECB remains cautious on war and inflation risks

ECB remains cautious on war and inflation risks

Olga Shendetskaya
19 hours ago

SpaceX shares slide as valuation questions grow

SpaceX shares slide as valuation questions grow

Ashutosh Sureka
20 hours ago

UK political transition weighs on pound as Keir Starmer says he will resign

UK political transition weighs on pound as Keir Starmer says he will resign

Hanna Syniavska
21 hours ago

U.S. futures fall as Iran risk weighs on markets

U.S. futures fall as Iran risk weighs on markets

Top 5 companies for you

United States

Live News

Anton Kharitonov
Now

Alphabet faces new challenges in AI race

Mykhailo Ihnatenko
Now

Nvidia tests support as investors await Micron earnings

Anton Kharitonov
Now

Microsoft corrects as investors question AI investment payback

Anton Kharitonov
Now

Apple remains in bullish trend despite pullback

Anton Kharitonov
Now

Bitcoin holds range ahead of next directional move

© IAFT Ltd., 2010-2026 All rights to the website are owned by IAFT Ltd.,
Registration number - HE 336186

Risk disclosure:

Information on the TradersUnion.com website is for informational purposes only and does not constitute any motive or suggestion to visitors to invest money. Moreover, we hereby warn you that trading on the Forex and CFD markets is always a high risk. According to the statistics, 75-89% of customers lose the funds invested and only 11-25% of traders earn a profit. Trading in futures and options carries substantial risk of loss and is not suitable for every investor.

That is why you should only invest money that you are prepared — or can afford — to lose at such high risks. Tradersunion.com does not provide any financial services, including investment or financial advisory services. Also, the Traders Union is not a broker and does not get money for trading in the Forex or CFD markets. Our website only provides information on brokers and the markets and helps its users to select the best brokerage company based on detailed information and objective analysis of brokers.
Disclaimer:

Traders Union (TradersUnion.com) shall not be liable for the consequences of trading decisions made by the Client and for the possible loss of his capital resulting from the use of this website and information published on it.

Forex market, CFD and cryptocurrency trading involves high risks and is not suitable for everyone. Before investing money, you need to adequately assess the level of your expertise and be aware of the risks, particularly in the context of trading with leverage. The information on this website is not intended for distribution or use by any person in any country or jurisdiction, where such distribution or use would be in violation of the local law or regulation. Any payments by Traders Union (TradersUnion.com) to the users of our website shall be legally interpreted solely as an incentive on our part for the activity on the website in the form of a deduction of a part of the advertising income; they shall not be a subject of any claims of our users or our obligations, a subject of disputes, as well as cannot be considered in relation to the services provided to users by brokers, both in fact and in their completeness and volume. The administration of the website shall not be liable for the content of user comments and reviews about the companies and shall not verify whether the authors of the reviews are indeed real clients of a specific company. All reviews, both negative and positive are published on the website without verification of their reliability; only offensive reviews that call for violence or any kind of discrimination and also reviews published from one group of IP addresses are moderated and removed. The authors of the materials shall be fully liable for the accuracy, completeness and impartiality of any information in the articles and reviews, including in the context of their use or mention of any brand names or trademarks. All mentions of the names of companies and their brands in any materials on the website shall be made in the context of communication of socially important information to the people about their activities by independent journalists, who are the authors. All evaluations and indicators on the website express the subjective opinion of the authors of the reviews (articles) and shall not be viewed as accurate statements and be a subject of disputes and claims against Traders Union.
Disclosure of advertisers and revenues:

All the services on the Tradersunion.com website are free for you to use. Our team spends thousands of hours per annum researching brokers and gathering information about them to help investors all over the world to choose reliable companies and to avoid fraudsters.

Indeed, the curating, sourcing, and organization of this process requires substantial financial investment by Tradersunion.com, which the website earns in the form of advertising payments. There are two types of advertising services on the website — direct advertising or partner (broker) participation programs. However, no services purchased by our partners shall affect the recommendations on our website, or our opinions, or ratings. Our ratings are based on our objective rating criteria and methodology; and the results are always equally and fairly applied to each broker. The work of our content authors and research groups does not involve any interaction with our advertisers and they do not have access to data concerning the amount of advertising purchased. For over 10 years we consider our independence, absolute openness, and objectivity as our main priority. Please follow the links to each of our affiliated broker’s websites. This will help Tradersunion.com to continue to provide our services to you for free.