$STRC isn't supposed to "depeg"

CN
1 day ago

$STRC isn't supposed to "depeg".

It's volatility and downside should be minimal.

Instead, it's down 10%.

But the capital invested in $STRC isn't expecting that.

The investor base gets betrayed, so to speak.

I'd rather take more vol and more downside in BTC, knowing that it's doing exactly what I expect it to, rather than to expect stability, allocate capital based on that stability, and then get surprised with hard and fast downside.

And that vol in BTC also works to the upside...

If Bitcoin puts in a bottom here and grinds back to the May highs, it would gain +30%.

But $STRC would gain +10%, plus maybe one or two extra percentage points from the yield, depending on how long the move would take.

And listen...

A 10% decline isn't crazy, in a vacuum.

But a 10% decline in 16 trading sessions?

For an instrument like this?

Yeah, no thanks.

It's like buying a high dividend stock for the stability, the lower beta, and the slow returns, only to watch it trade like a memestock to the downside.

Or buying utility stocks in advance of a recession, only to watch them underperform the S&P 500.

That kind of "betrayal" is exactly what's happening with $STRC.


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