Encryption analyst 0xHamZ: Circle has largely frozen redemption

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.

Interpretation of this information:

The message is discussing the situation with Circle, a company that offers a stablecoin called USDC. The author, an encryption analyst named 0xHamZ, claims that Circle has frozen redemption to a large extent. This means that those who hold USDC and want to redeem it for cash or other assets are struggling to do so.

The implications of this freeze are mixed. On the one hand, it means that those who hold USDC and wish to convert it may be stuck with it for a while, potentially leading to a larger hole in percentage terms. On the other hand, it could be good news for USDC bulls, as it reduces the risk of survival bias due to people leaving the market en masse.

The author suggests that the best way to deal with this situation is to use a borrowing/lending platform and carefully increase leverage to $0.60. This strategy is based on the idea that those who hold USDC can use it as collateral to borrow funds, which they can then use to invest in other assets. By doing so, they can benefit from the potential upside of those assets without being stuck with USDC if they want to redeem it.

Overall, the message suggests that the freeze on USDC redemption may have mixed implications for investors. However, there are ways to navigate this situation, such as using borrowing/lending platforms and increasing leverage carefully.