Tax implications vary by jurisdiction but typically treat airdrops as ordinary income at fair market value upon receipt.
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Exchange outages cause panic because they interrupt liquidity and prevent traders from managing positions. When large platforms like Binance or Coinbase go offline, users fear manipulation, hacks, or systemic risks. Outages during volatile moves exacerbate frustration, leading to mass sell-offs once trading resumes. These events undermine trust in infrastructure reliability, especially for institutions requiring stable operations. Social media amplifies concerns, quickly spreading uncertainty. Although most outages stem from traffic surges or technical issues, their timing often coincides with extreme volatility. As a result, even brief downtimes can ripple across markets, magnifying short-term swings and destabilizing sentiment.
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Liquidity provider eligibility boosts TVL temporarily. Many LPs exit immediately post-airdrop, causing liquidity cliffs.
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