Cryptographic Treasury companies introduce counterpart risks for bearer assets: CEO

Bitcoin Treasury companies (BTC) and Crypto’s treasure propose risks similar to collateralized debt obligations (CDO), titled baskets of mortgages at home and other types of debt that triggered the financial crisis of 2007-2008, Josip Rupena, CEO of the Milo platform and the former Goldman Sachs analyst, said Cointelegraph.

Cryptographic treasury companies take carriers without the risk of counterpart and introduce several layers of risk, including corporate management competence, cybersecurity and business capacity to generate cash flow, Rupena said. Added:

“There is this aspect in which people take what is a fairly solid product, a mortgage in the past or in Bitcoin and other digital assets today, for example, and begin to design them, taking them in a direction in which the investor is not sure of the exhibition they are receiving.”

Rupena told Cointelegraph that, although he does not expect Crypto Treasury companies to be the cause of the next bears market, supercharged companies could “exacerbate” a market recession through forced sale, but it is still too early to know what the exact effects will be.

Several market analysts have issued warnings about the potential of overextended cryptographic treasury companies to cause contagion throughout the market through forced sale, depress cryptography prices in a hurry to cover debts.

Related: Peter Thiel vs. Michael Saylor: Bet or bubble of the Crypto Treasury?

Companies diversify in Altcoin Holdings, leaving market investors

Traditional financial companies go beyond the Bitcoin Treasury strategy popularized by BTC lawyer Michael Saylor and diversify in Altcoin’s treasure bonds.

During July and August, several companies announced Toncoin (Ton), XRP (XRP), Dogecoin (Doge) and Solana (Sun) Corporate Treasury Strategies, for example.