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      Analyst Willy Woo: BTC as collateral may favor lenders in controlling risk

      PANews reported on September 23 that Bitcoin analyst "Willy Woo" posted that the market's oft-cited notion of "BTC as pristine collateral" benefits lenders more than borrowers. He pointed out that traditional collateral such as mortgages has opaque valuations and long disposal cycles, leaving banks to bear greater risk; whereas digital assets like BTC have real-time visible prices and convenient on-chain liquidation, allowing institutions to quickly trigger forced liquidation and collect penalties during price swings, then roll the funds over to the next borrower. Therefore, in lending scenarios, users who pledge highly volatile, easily real-time-priced assets as collateral are actually more likely to be liquidated and charged additional fees.


      Source: PANews
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      Terra Founder Do Kwon Sentenced to 15 Years in Prison for Fraud