Cory Klippsten questions high interest rates of Coinbase and Nexo
@coryklippsten: Klippsten questions interest rates
Cory Klippsten, CEO of Swan Bitcoin, raises concerns over unusual borrowing rates offered by major crypto firms.
In a tweet directed at industry observers, Klippsten highlighted that Coinbase and Nexo are offering interest rates of 12 percent and 16 percent on USD holdings, respectively. The question raised revolves around identifying the borrowers financing these rates, adding a layer of intrigue to the current financial dynamics in the crypto lending space.
This inquiry into the lending mechanics reflects broader market concerns about sustainable interest rates and potential risks. Klippsten’s tweet emphasizes the need for transparency in understanding who the borrowers are in such high-stake transactions.
Crypto analyst, ZachXBT, echoed these sentiments, questioning the stability and risk underlying these high interest propositions. By drawing attention to such practices, industry insiders like Klippsten are pushing for more clarity and accountability in crypto lending operations.
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In the previous news, tweet author Cory Klippsten discussed the implications of regulatory changes on crypto exchanges.
