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366 Borrowed Money Fueled Crypto’s $700 Billion Sell-Off

The Information
Yueqi Yang @ The Information · today 16:44 EDT

Borrowed Money Fueled Crypto’s $700 Billion Sell-Off

The flash crash that rumbled across the crypto market on Friday can be traced to an unusual token that aims to track the dollar, a fast-growing exchange that allows investors to borrow heavily and speculative tokens that traders buy using debt.

That combustible mix of borrowed money was ignited Friday by President Donald Trump’s announcement of new tariffs on China. Stocks sold off modestly but crypto crashed, at least for a short period.

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