Welcome back, everybody, to Cryptoete!. My name's Austin. In today's post, I want to talk about Credit Suisse and its potential collapse. I'll update you on how this may affect the crypto market. We'll talk about the D5 protocols, which specific tokens are pumping and why, and on top of all that, we'll start with the market mover So let's jump in and look at the data Bitcoin's supply continues to shift away from exchanges as traders show signs of being content with their current holdings, with less than 9% of BTC on exchanges for the first time since 2018. So it is a good vote of confidence for the bulls. There is less bitcoin on exchanges. In fact, there is much less bitcoin sitting on exchanges than at our peak last year. For the first time since November 2018, the price peak on bitcoin exchanges fell below 9% in 2021. Of course, you have Bitcoin on exchanges if you intend to sell it eventually, but you take it off exchanges if you intend to hold it bullish. Let's return to this. Let's keep an eye on this. If Credit Suisse collapses, will it bring more volatility to the crypto market? As they describe themselves, Credit Suisse is a leading wealth manager with strong investment banking capabilities. They are one of the main wealth managers globally, yet a few days ago, they were rumoured to be on the brink of collapse. How did this come to our attention? Well, investors started looking at credit default swaps. What are they? Those are effectively bets on whether a debt issuer will survive. This will give you an updated version of what's happening, but just understand that the company's credit default swaps widened to the worst level since two thousand. Here is the chart: Credit Suisse credit default swaps spread at 14-year highs where we are today and haven't seen these levels since September 2008, right before the financial crisis. Credit Suisse and Deutsche Bank are sort of in the same situation. Are they the next Lehman Brothers Let's break down this thread, then I'll play that clip. Well back in the day, Lehman Brothers had 600 billion worth of assets when they crashed and took the economy with them, as opposed to the 2,800 billion of assets that Credit Suisse and Deutsche Bank controlled and assets under management. That's 4.6 times more So, what does that mean for the crypto market and the world? For starters, their stocks are tanking. Yes, we're out of bounds today, but the stocks of both banks have taken an absolute beating in the last year alone, falling by more than 40%. Credit Suisse increased from 983 to 392, while Deutsche Bank decreased from 12 and 30 cents to seven dollars and forty cents. So investors are leaving in droves and, to be fair, in the past year many many many companies' bank stocks were down. We're in a down market, but the information we got in these last few days changed everything. The most recent interest arose due to a story from ABC Australia, which reported ominously that a major international investment bank is on the brink of collapse. Although the reports didn't specify any names, the rumour is that they are referring to Credit Suisse, and why was that the rumour Well, we all then took a look at their CDS's credit default swaps. Credit Suisse's CDs are at the highest level since 2008. The CDS is essentially insurance purchased against a potential default, and the metrics right now are very similar to what they were before the last collapse. However, the unfortunate thing about something like this is that even if there is no underlying issue, a rumour can quickly become a self-fulfilling prophecy as panic and clients begin withdrawing their money. The bank then said Monday that it was still pressing ahead with its review that included potential divestitures and asset sales. So Credit Suisse is pressing ahead and will be divesting some of its assets. Now, obviously, Deutsche Bank is slightly different at the moment. Not much is known about the reasons behind Deutsche Bank's underperformance. Currently, they're trading at approximately 0.3 times Concerns had been raised earlier about their exposure to the derivatives market, but in summation, what this means to you and me Both Credit Suisse and Deutsche Bank are the biggest banks in Switzerland and Germany, respectively, and have a history of more than 150 years. They are also considered to be G sibs, meaning globally systematically important banks, making a bailout likely in the event of any serious issues This is eerily similar to the collapse of Await, and just to give you the full picture, we did get another update from Credit Suisse today. I'll play this 90-second clip. Watch this one here Let's track shares of Credit Suisse here, as we're giving you kind of a world view of some of the different movements that we're seeing today Credit Suisse is up about 3.5 percent this morning after the company's shares briefly fell to an all-time low on Monday, while credit default swaps reached a new high. Credit Suisse executives have been calling clients and investors to reassure them that the company is in good shape and that it is moving to sell assets as part of its new business plan—a new business plan that, of course, must reassure many of its potential clients that it will work. Yeah, I like this new research out by JP Morgan's credit team this morning. They're saying that they would like to see credits pull forward their earnings release. They're supposed to report on October 27th. They would like to see this and this is coming from their credit team. They're really plugged into what you're seeing in the credit default swap markets, but nonetheless, they want to see that pull forward and get a clear action plan on that investment banking division Do they need to create, and I'm sure you remember the term from the financial crisis, a bad bank where they take all the bad assets and hope to syphon them off and stick them out there in the ether somewhere and then just focus on some of their strong assets, but that's the first time I've really heard that brought up since the financial crisis? A bad thing, all right. Give me your thoughts on this down below. I'll keep you updated on the bright side. If I may say so, if there is any bright side to all this, a potential future of decentralised finance is looking brighter and brighter Maker D5 tokens and Chain Link Light of Finance tokens Why not? I would rather trust a decentralised protocol than these major centralised banks that have failed us repeatedly over the last five years. So, first and foremost, why is the chain link up nearly 8% in the last 24 hours? Well, we know that a major integration partnership with Coinbase Cloud, the San Francisco-based crypto exchange API and data service, is now using chain link oracles to provide the most accurate, most decentralised information from off chain, as well as chain link has their new staking service to be launched in December. We've talked about this, we've informed you about this. That's why channelling is pumping. Why is the light of finance shining brightly? The highly popular liquid staking protocol is also enjoying a bullish uptick now. There have been fewer technical updates for the staking project, but following the Ethereum march last month, some of lydo's fundamentals have improved. For instance, since staking Ethereum death, the token that users receive in return for staking Ethan, the platform has moved closer to price parity with Ethereum. So obviously, any improvement like this, however small, does provide more confidence in the underlying project. So that's Lido, but why is Maker Token pumping Maker Token today For those who don't know, Maker is the Unofficial Central Bank for Defy. It's a decentralised stablecoin that is the third largest dollar pegged asset in the crypto market after Circles USDC and Tyler's USDT. This means that there is a lot of trust in this protocol, and the recent rise in Maker's price comes amid several new proposals for the protocol. Winkle Violet, Winkle Violet's cryptocurrency exchange, recently proposed depositing its native GUSD stablecoin with maker Dao for a 1.25 percent yield. Earlier this month, Coinbase made a similar move, offering the D5 platform at 1.5 percent on its USDC holdings. So, as the centralised players like Credit Suisse collapse, the decentralised players are shining more and more as the confidence grows.

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