A 30 billion yuan unwind is landing on crypto’s LPs.
Beijing’s Chaoyang police have opened an investigation into companies associated with CreditEase, and several suspects, including a person surnamed Tang, have been placed under criminal compulsory measures. Redemptions for its quasi-fixed-income products have been suspended across the board since May, involving about 30 billion yuan and affecting nearly 100,000 high-net-worth clients. The company itself acknowledged in a letter that it faces a substantial debt repayment shortfall.
CreditEase-affiliated funds have previously invested in crypto projects like Circle and Figure, and also committed capital as LPs to a number of traditional VC funds. Unwinding positions requires cash, so overseas entities and fund stakes will have to be put up for sale. That’s slowing the pace of exits in the crypto primary market, putting sentiment in the RWA and stablecoin sectors under pressure first.
For those holding RWA-related positions: are you trimming or adding at these levels? What’s your cost basis? Drop a number in the comments.
$USDC $ONDO $ETH
#RWA #stablecoin
Beijing’s Chaoyang police have opened an investigation into companies associated with CreditEase, and several suspects, including a person surnamed Tang, have been placed under criminal compulsory measures. Redemptions for its quasi-fixed-income products have been suspended across the board since May, involving about 30 billion yuan and affecting nearly 100,000 high-net-worth clients. The company itself acknowledged in a letter that it faces a substantial debt repayment shortfall.
CreditEase-affiliated funds have previously invested in crypto projects like Circle and Figure, and also committed capital as LPs to a number of traditional VC funds. Unwinding positions requires cash, so overseas entities and fund stakes will have to be put up for sale. That’s slowing the pace of exits in the crypto primary market, putting sentiment in the RWA and stablecoin sectors under pressure first.
For those holding RWA-related positions: are you trimming or adding at these levels? What’s your cost basis? Drop a number in the comments.
$USDC $ONDO $ETH
#RWA #stablecoin