When you see statistics like this it tells me those who are leveraging are desperate and have no clue about the value of money. When you work everyday and appreciate what you have and then see idiots throwing money away it shows they value nothing. The problem is if you have never struggled to buy a car or a house or something you appreciate then life has been far too easy for you. Half a billion dollars tossed away by 164K traders averaging out at $3.3K each is the height of stupidity and shows a gamblers mentality not one of an investor. Crypto is risky enough without adding leverage and there is no sympathy for these fools.
I was really hoping that the 5% drop I have seen on my COTI stake value over the last 24 hours would have at least seen some liquidations. Sadly the idiots staked in the high risk Treasury pools on COTI lost so much the last time they are all in the no risk pool now. That was a really sweet crypto moment when millions of COTI were liquidated and distributed to those investors staked in the no risk Level 1 pool.
Nothing doing and the base APR remains unaffected at 5.78% and has been as high as 20% in the past so this is nothing special. I used to feel bad earning tokens of another persons misfortunes and now have zero sympathy for greed. I have always staked in the no risk pools because what I have I truly value and has taken years to get to this point. This will never be risked for earning a few extra percent even if it was an extra 20% because there is a reason why the extra percent is being offered and it is not a good one.
Maybe this drop was too gradual giving them time to move their funds unlike the last big dip which saw 10% drops in price within minutes. I could never risk so much knowing what I have accumulated has taken close to 4 years to achieve and the risks are never worth the reward. How can one recover 4 years of accumulation as this is time you can never get back.
The only big winners from crypto leverage are the exchanges themselves and why they are happy to offer 100-1 or some even 1000-1. The higher the leverage the more "investors" the exchange attracts increasing trades which results in more fees being earned by the exchange. The markets can be manipulated both ways by the exchanges removing long and short positions which liquidates those trades and the exchange keeps all the tokens. This is obviously highly profitable and one would have to be brain dead to not think this is all manipulated price action.
Leverage in my view only adds to the volatility of crypto and if it was not around we would still have volatility, but it would not be as violent. I have never been tempted for the reason I do not understand how it works and is no different than choosing red or black on a roulette table. Crypto either goes up or down and you may get lucky this week and then lose it all next week. The odds are never in your favor and the house always winds which is the exchanges in this case.