Post

Is it a bit risky for crypto enthusiasts to play with US stocks? Are crypto friends overreacting to SNDK? From Friday to Saturday, many friends directly or implicitly expressed a bearish view on $SNDK. Could this be the crypto circle's "good news is bad news upon realization" mentality? #闪迪投资者日后股价大涨，长期目标待验证 ┈➤ Funding Rate Differences ╰✦ Crypto Circle Binance's SNDK funding rate started to decline on August 14, dropping as low as -0.084303% on August 15, equivalent to an annualized short borrowing rate of 92.31%. See Figure 1. Gate's YubiBao annualized rate also began rising from August 14, reaching a peak of 91.8% annualized. It currently stands at 11.44% annualized. See Figure 2. Gate's YubiBao product interest comes from users borrowing coins, and the likely purpose of borrowing is to sell, then buy back after the price drops to repay the loan. This is similar to short selling stocks in the stock market. ╰✦ US Stocks Now let's look at the short selling data for SNDK stock, which is also about borrowing rates. According to iborrowdesk data, the borrowing rate on August 14 was 0.28%, with the highest, lowest, open, and close all at 0.28%, indicating no significant increase in borrowing demand. See Figure 3. It's not that the stock borrowing annualized rate of 0.28% is vastly different from the crypto market; mainly, the borrowing rate for SNDK stock in the stock market is basically flat. This is why Brother Feng believes crypto friends are overreacting to SNDK.