19 MAY CRYPTO FLASH CRASH

Lettre à nos followers

The cryptocurrency universe experienced a real crack on Wednesday 19 June.

Some tokens lost more than 50% in extreme value on the day.

Bitcoin, although more liquid, saw its value drop from 60,000 to 30,000 USD in a few days.

Although these declines are part of the landscape, this movement will remain exceptional in its violence.

There was no macroeconomic news to fuel this movement. It is only due to a series of cascading liquidations of portfolios that were surely built with significant leverage. The Diabolo team did its best to limit the losses, and as a risk manager I can say that the traders were reactive and prudent.

Such moves put our risk management to the test but also allow us to test the limits. We will continue to work in this direction with more and more tools to better calibrate positions and continue a rigorous selection of traders.

Some of you may have had a very stressful day. Diabolo is positioned for the long term and aims to offer attractive performances over the long term. Although the month of May will be for many in the red, the annual performance remains at very good levels. Our traders will take advantage of this event to build new positions and, in compliance with our risk rules, to increase their profits.

Diabolo thanks you for your confidence and hopes to continue to be your preferred partner for asset management in the crypto-currency market.

Arnaud Gaboury

Risk Manager Diabolo.io