According to Bitcoin.com, the recent market downturn has intensified scrutiny on Digital Asset Treasuries (DATs), companies that hold cryptocurrencies on their balance sheets. Experts like Bitwise’s Matt Hougan and Dragonfly’s Rob Hadick have noted that while DATs initially brought stability, they now pose new risks, especially as demand has dropped 90% since August. Sell pressure has increased, with many DATs offloading holdings to derisk. Hougan suggests that larger DATs will likely survive due to better access to debt and liquidity, signaling a potential consolidation in the sector.
DATs Face Sell Pressure Amid Market Downturn, Experts Predict Sector Consolidation
Bitcoin.comShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.