According to a new report from the Organization for Economic Co-operation and Development (OECD), the next crypto crash could cause widespread financial instability as the cryptocurrency industry becomes more closely linked to traditional finance.
OECD researchers have joined a growing chain of experts who argue that the industry focused on decentralized technology is heavily concentrated among a small group of respondents. The researchers behind the report argue that the bankruptcies of these firms reveal the interconnectedness between companies in crypto. OECD experts point out that “if any of these dominant companies face challenges in the future, the risk of widespread disruption and crisis in the cryptocurrency asset markets will increase.”
Arguing that decentralized finance is more dependent on stock markets than some advocates say, the report describes centralized trading firms as “in many ways the lifeblood of DeFi” as they provide a source of funding and collateral for DeFi protocols.
Source: https://tr.tradingview.com/news/bitcoinsistemi:87448e352d9e8:0/
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