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Circle Freezes Redemption: 0xHamZ Advocates for Leveraging in USDC Investment

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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 i

Circle Freezes Redemption: 0xHamZ Advocates for Leveraging in USDC Investment

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 encryption analyst 0xHamZ, Circle has reportedly frozen redemption to a large extent. This indicates that the risk/reward ratio of USDC (US Dollar Coin) bulls is very good. In simpler terms, those who hold USDC will not face survivor bias due to people leaving the market. As a result, the hole in total market percentage will become much larger.

Survivor bias is an extremely significant factor in the investment community. It is the tendency to continue with an investment strategy that has worked well in the past, even if current market conditions have changed. This bias is particularly prominent when investors only consider successful companies, dismissing those that have failed. In the case of USDC, survivorship bias is reduced due to Circle’s freeze on redemption, which means former investors may have left the market, reducing the overall percentage of investment in USDC, but current investors are not facing survivor bias as USDC’s market share has not changed.

0xHamZ has suggested that the best way to approach this situation is to use a borrowing/lending platform and cautiously increase leverage to reach a $0.60 quota. This means that investors may borrow USDC and use those funds to buy other cryptocurrency tokens or to gain leverage in USDC with the intention of generating greater returns. However, it is important for investors to keep in mind that using leverage in any investment comes with risk.

Furthermore, USDC is a “stablecoin,” which means its value is tied to the US dollar. As a result, investors may be less likely to face significant losses or gains because the value of USDC is relatively stable. Of course, as with any investment, there are some risks to consider.

In conclusion, 0xHamZ’s interpretation of Circle’s freeze on redemption serves as a reminder that survivorship bias is an essential factor to consider before making any investment decisions. USDC’s relative stability as a stablecoin combined with its low risk of survivorship bias makes it an attractive investment opportunity to consider. However, investors must be conscious of the risks involved and consider leveraging through borrowing/lending platforms cautiously.

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