Maslaton warns about the risks of leverage in any financial market.
For the lawyer, no one should put their BTC in unregulated platforms or investment funds.
Argentine lawyer and market analyst Carlos Maslatón was present in a live chat that took place via Twitter a few days ago. The subject of the conversation was mainly the bitcoin (BTC) market and other cryptocurrencies.
In this dialogue, which had more than 3,000 live viewers and was published on the Twitch channel “Uncensored Right”, Maslatón expressed himself on several issues related to operations with cryptoassets.
By way of introduction, the lawyer and former treasurer of the BTC custody company Xapo, mentioned that, to his understanding, there are four categories of financial products: stocks or indices, bonds, commodities and currencies. To the latter category belong bitcoin and other digital assets.
“I trade, analyze and make predictions,” Maslaton mentioned regarding his activity with those products. “What I do is follow the cycles of the markets, even mini-cycles and try to buy at the best time and sell also at the best time,” he added.
In the more than four hours that the conversation lasted, several topics were exposed and several participants of the space spoke. Below is a summary of some of Carlos Maslatón’s opinions on bitcoin and cryptocurrencies, which were exposed in that area.
By way of clarification, the speaker said during the broadcast: “the word recommendation and advice is out of my language for legal reasons. I do not recommend or advise anything, I can only give an opinion of how I see things”.
Beware of Leverage
Cryptopedia, which is an educational section of CryptoNews, defines leverage as “a financial strategy used to increase the profits that can be earned on an investment.” The text adds that this method involves getting into debt through credits in order to increase the profitability of a commercial operation.
As a warning, Cryptopedia indicates that “the higher the degree of leverage, the higher the risk of losses”. For this reason “it is usually a risky practice, especially in highly volatile markets such as cryptocurrencies”.
In accordance with these warnings, Maslatón, during his e
He said he was against this practice in any financial market. “If you leverage 10, 50, 100 or 500 times the capital you have, and the market goes just a few minutes to the opposite side of where you thought it was going to go, you can lose everything,” he explained.
is one of the biggest mistakes, especially for beginners in the financial markets. It comes from the belief that they’re going to be able to multiply several times the effect of what they’re trying to do. It is part of ambition, but it is also part of ignorance. Generally, people who engage in this speculative mode do not understand what they are doing. Carlos Maslatón, lawyer and market analyst. For Maslatón, leverage is “one of the biggest mistakes, especially for beginners, in the financial markets.” Source: Pixabay.
Those who like to “play with leverage
“, Maslatón compares them to those who play Russian roulette or to someone who jumps into the void: “he can fall into the water and save himself or hit a stone”.
Anyway, the analyst makes exceptions to his rule: “I can use leverage, I personally can use leverage for myself, but it’s like atomic energy, very few people can use it, nothing else, the rest are players who are predestined to melt”.
There are good and bad regulations for the bitcoin industry
Another issue Maslatón spoke about was the regulations in the bitcoin market. The lawyer, although he made famous his expression “100% barrani
” (i.e. in favor of free, unregulated and untaxed trade), refuses to consider regulations on the bitcoin industry as bad in and of themselves.
As far back as his time as treasurer at Xapo, Maslaton argued that bitcoiners should impose regulatory standards and KYC policies on themselves that are even more stringent than those of banks themselves, as the two industries, according to him, were meant to work in tandem.
Specifically, during the Twitter conversation, reference was made to a recent case reported by this media outlet, in which trader Pablo Kobylañsly, under the alias Ozone, raised USD 70k from his Twitter followers for an unregulated investment fund and lost it by leveraging Ethereum
The trader himself
Kobylañsly was present at the Twitter chat and confirmed that this is indeed what happened. He denied stealing the money and explained that it was a mistake on his part.
Maslaton used the case to bolster his arguments against leverage, and also made the point that no one should hand over their money to a third party if it’s not under the control of regulators.
“Most players in the financial markets (not investors) are predestined to go bust and many times it drags down, unfortunately, bona fide third parties who trust them.”
Carlos Maslatón, lawyer and market analyst.
The lawyer, who defines himself as a “Manchesterian liberal” is not unaware that many bitcoiners, who are also liberal, are reluctant to accept regulations, “but there are good and bad, rational and irrational regulations,” he argues. In the case of cryptocurrency investment funds, exchanges, bitcoin custody services, etc., Maslatón explains that “being regulated allows the investor to monitor what is happening, and to be sure of where the assets are safeguarded”.
“If you give money to another person, it has to be a registered fund, where there is an authority that checks at all times what is happening and where the assets are,” Maslatón argues.
In the conversation, the case of AfriCrypt was mentioned, which was opportunely reported by CriptoNoticias. In June this year, the owners of this South African exchange disappeared along with 69 thousand BTC. Days later they reappeared on the scene and said that the platform had been hacked.
“How the hell does anyone trust such a thing!” asks Maslaton on the matter. “To me, it seems stunning. Either you go to a regulated fund or you have them on a known exchange,” he adds.
Maslatón specifically mentioned Bitfinex, Bitstamp, Kraken, Coinbase, Bitso, SatoshiTango, Ripio and Bitex. “I didn’t name Binance because it’s not regulated, but I find it a totally reliable place to custody assets and more basically to trade,” he adds.
As an example on the matter, the lawyer mentioned that a neighbor, who lives in the same building as him, told him that he had invested USD 800 thousand in an unregulated investment fund and that he was being asked for more money: “The guy sent 800 lucas! A madman! And he sent it to an island in the Indian Ocean… he doesn’t see that money anymore”.
Having said all that, it’s worth clarifying that the ideal many bitcoiners hold is far from keeping BTC and other cryptoassets in exchanges and escrow services. “If they’re not your keys, they’re not your bitcoins,” goes the proverb, and that’s why <a href=”https://www.criptonoticias.com/negocios/opciones-monederos-bitcoin-escatch-better/” target=”_blank” rel=”noopener”>self-custodial wallets are the preferred choice of many who choose to stay away from any middleman between them and their money.
Ethereum, Cardano and PancakeSwap: what does Maslaton think about altcoins?
Once again, Cryptopedia comes to our aid and, in its Glossary, provides us with a definition of “altcoin”. It explains that it is a “term used to refer to alternative cryptocurrencies to bitcoin; such as litecoin, ether, dash, monero, zcash, bitcoin cash, among others”. It adds that the word can also be used to refer to “other crypto assets that do not have their own ledger, such as tokens.”
“There was just a question about shitcoins, altcoins, if they are crap… put the graph to see if it’s crap or not and let’s see case by case,” Maslatón said in the Twitter space in which he participated. For him, “the way to value the usefulness of a thing is its behavior in the market and there is no other”.
In the same vein, the lawyer said he does not pay attention to issues such as the network effect, which says that the utility of something, for example, bitcoin, increases as more people adopt and use it. “My interpretation of whether something is useful or not is the price,” he explained.
During his presentation, the Argentine analyst positively valued bitcoin as well as ether (ETH) and cardano (ADA). About the latter cryptocurrency, he said that its price could point, in the coming years, towards USD 25. Maslatón also said to operate the CAKE token, from the decentralized exchange PancakeSwap.
Regarding the price of bitcoin, this news portal reported days ago that, according to Maslatón, it could be worth USD 1 million in 2025. In a shorter period, according to him, its price could be around USD 95 thousand before the end of the current year.