Airdrops may carry legal risks if tokens are deemed securities. Check local regulations and project compliance to avoid potential legal exposure.
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A flash loan is an uncollateralized loan in decentralized finance (DeFi) that must be borrowed and repaid within a single transaction block. These loans allow users to borrow assets without any upfront collateral, provided that the borrowed amount is returned before the transaction ends. Flash loans are often used for arbitrage opportunities, debt refinancing, or executing complex strategies in DeFi, where the user can make a profit. However, they also carry risks, such as the possibility of liquidation or manipulation if used maliciously.
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Market sentiment is a major driver of volatility in the cryptocurrency market. Positive news, such as regulatory approvals or partnerships, can spark a wave of buying, leading to price surges. Conversely, negative news, like security breaches or government crackdowns, can cause panic selling and sharp declines. Social media amplifies these effects, as rumors and viral trends can spread rapidly, influencing retail investor behavior. Given the emotional nature of the crypto market, sentiment-driven fluctuations often result in larger and more frequent price swings compared to traditional markets.
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