Strive Executive: Digital Credit Sell-Off Was a Liquidation Event, Not a Credit Crisis

CoinFeed June 23 news, according to CoinDesk, Strive Chief Risk Officer Jeff Walton said that the digital credit products (STRC and SATA) related to the Strategy Bitcoin ecosystem have partially rebounded after a sharp sell-off last week. The volatility was attributed to leveraged liquidations and heavy selling pressure, rather than a deterioration in underlying credit quality. Walton noted that trading data shows holders selling related instruments triggered liquidations in traditional financial markets. The event did not originate from DeFi protocols but is normal volatility in the maturation process of a new asset class. In terms of liquidity, STRC's trading volume on Thursday was about $950 million, and SATA's was about $150 million, far exceeding the approximately $77 million of BlackRock's preferred securities ETF (PFF) over the same period, indicating the market's strong ability to absorb large trading volumes, which is crucial for attracting institutional investors.