Gain valuable insights into the digital asset market and risk management strategies with Agio Ratings.
It’s generally agreed that location is an important consideration in counterparty risk. If you are registered and regulated in North America, you are seen as safer than someone based in Palau. But how do you convert this intuition into a number that can be used for managing risk exposure? It’s not as easy as it may sound.
There can be no doubt that this has been a pivotal year for digital assets. Valuations have dropped dramatically. Investors have lost money. But the ecosystem has survived relatively intact and outflows have started to reverse. However 2022 has also been a transitional year for another important reason.
In line with this quote from Chi Chi Rodríguez, the professional golfer, it’s the received wisdom that crypto-trading volumes are grossly inflated. But to what extent?
Agio Ratings co-founder, Henry Stott, was recognised in The Times newspaper for his pioneering work in football analytics. Agio is on a mission to develop a predictive edge in risk decision-making for digital assets.
In 1936 Keynes described how irrational emotions influence market pricing: “…our decisions to do something…can only be taken as a result of animal spirits…not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities”.
Coingecko and Kaiko (plus others) have developed exchange ratings, originally branded as Trust Scores, to help investors choose where to trade. But, without doubting their good intent, these scores are essentially made up.
Another Quarter and another Crypto-crisis. This time FTX halted withdrawals and has filed for bankruptcy as a results of what we’ve coined a “Denial of Credibility” attack. And the next question is, who will be left bearing the resultant losses?
Entering the crypto-sphere as a civilian, one of the first things you notice is that there are a lot of exchanges and that their names seem to be constructed from a finite set of nouns.
When Hurricane Katrina hit Florida and Louisiana in 2005, it was North America’s most destructive storm on record. With winds reaching 175mph, Katrina caused $125Bn of damage and left people wondering: was this simply bad luck or a new climate-change normal?
“Infamy, infamy, they’ve all got it in for me.” The final words of Kenneth Williams as Julius Caesar in the British comedy film Carry on Cleo.
.jpg)
