Maslatón warns about the risks of leverage in any financial market.
For the lawyer, no one should put their BTC on unregulated investment funds or platforms.
Argentine lawyer and market analyst Carlos Maslatón was present in a live chat that took place on Twitter days ago. The topic of the conversation was mainly the market for bitcoin (BTC) and other cryptocurrencies.
In that dialogue, which had more than 3,000 live viewers and was published on the Twitch channel «Right without censorship», Maslatón expressed himself on various issues related to operations with crypto assets.
By way of introduction, the lawyer and former treasurer of the custody company of BTC Xapo, mentioned that, in his understanding, there are four categories of financial products: stocks or indices, bonds, commodities and coins. This last category includes bitcoin and other digital assets.
“I operate, analyze and make predictions,” Maslatón mentioned in relation to his activity with these products. “What I do is follow the cycles of the markets, even the minicycles and try to buy at the best time and also sell at the best time,” he added.
In the more than four hours that the conversation lasted, various topics were presented and several participants from the space spoke. Here is a summary of some opinions of Carlos Maslatón on bitcoin and cryptocurrencies, which were exhibited in that area.
By way of clarification, the speaker stated 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 on how I see things.
Beware of leverage
The Criptopedia, which is an educational section of CriptoNoticias, defines leverage as “a financial strategy used to increase the profits that can be received on an investment.” Add the text that this method involves borrowing through credits in order for the profitability of a commercial operation to increase.
As a warning, the Cryptopedia indicates that “the higher the degree of leverage, the greater 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 presentation, manifested against carrying out this practice in any financial market. “If you leverage 10, 50, 100 or 500 times in 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.
The leverage [apalancamiento] It is one of the biggest mistakes, especially of beginners in the financial markets. It is due to the belief that they will be able to multiply the effect of what they are wanting to do several times. It is part of the ambition, but it is also part of the ignorance. Generally, people who engage in this speculative mode do not understand what they are doing.
Carlos Maslatón, lawyer and market analyst.
Those who like to «play with the leverage», Maslatón compares them with those who play Russian roulette or someone who jumps into the void: “he can fall into the water and save himself or hit a stone.”
Anyway, the analyst does exceptions to your rule: «I can use a lever, for me personally I can use a lever, but it is like atomic energy, very few people can use it, nothing more, the rest are players who are predestined to melt”.
There are good and bad regulations for the bitcoin industry
Another of the topics on which Maslatón spoke was about regulations in the bitcoin market. Although the lawyer made his expression «100% barrani»(That is, in favor of free, unregulated and tax-free trade) refuses to consider regulations bad in themselves to the bitcoin industry.
From his time as treasurer at Xapo, Maslatón argued that bitcoin companies should impose themselves Regulatory standards and KYC policies even more demanding than those of the banks themselvesSince both industries, according to him, were destined to work together.
Specifically, during the conversation on Twitter, reference was made to a recent case reported by this medium, in which the trader Pablo Kobylañsly, under the alias of Ozono, captured USD 70 thousand of his followers on Twitter for an unregulated mutual fund and lost them by leveraging on Ethereum.
Kobylañsly himself was present at the Twitter chat and confirmed that, indeed, that was what happened. He refused to have stolen the money and explained that it was a mistake on his part.
Maslatón took advantage of the case to reinforce his arguments against leverage, and also referred to the fact that no one should give their money to a third party if it is not under the control of regulators.
“Most players in financial markets (not investors) are doomed to fail and unfortunately many times bona fide third parties who trust them are dragged in.”
Carlos Maslatón, lawyer and market analyst.
The lawyer, who defines himself as a “Manchester liberal” is not unaware that many bitcoiners who are also within liberalism, are reluctant to accept regulations“But there are good and bad, rational and irrational regulations,” he argues. In the case of cryptocurrency mutual funds, exchanges, bitcoin custody services, etc., Maslatón explains that “being regulated serves so that the investor can monitor what is happening, and be sure where the assets are protected.”
“If you give money to another person, it has to be a registered fund, where there is an authority that fixes at all times what happens and where the assets are,” Maslatón argues.
In the conversation it was mentioned the AfriCrypt case, which was timely reported by CriptoNoticias. In June of 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 ?!” Maslatón wonders on the matter. “It seems impressive to me. Either you go to a regulated fund or you have them on a well-known exchange, “he adds.
Maslatón specifically mentioned Bitfinex, Bitstamp, Kraken, Coinbase, Bitso, SatoshiTango, Ripio, and Bitex. “I did not name Binance because it is not regulated, but it seems to me a totally reliable place to safeguard assets and more basically to operate,” he adds.
As an example of the matter, the lawyer mentioned that a neighbor, who lives in the same building, told him that he had invested USD 800 thousand in an unregulated investment fund and that they were asking him for more money: «800 Lucas sent the kind! A madman! And he sent them to an island in the Indian Ocean … he doesn’t see that money anymore.
Having said all this, it is worth clarifying that the ideal that many bitcoiners hold is far from keeping BTC and other crypto assets in exchanges and custody services. “If they are not your keys, they are not your bitcoins”, says the proverb and that is why self-custody purses are the preferred choice of many They choose to stay clear of any middle man between themselves and their money.
Ethereum, Cardano and PancakeSwap: what does Maslatón think about altcoins?
Once again, the Cryptopedia comes to our aid and, in its Glossary, gives us a definition of “altcoin”. It is explained there that it is a “term used to refer to alternative cryptocurrencies to bitcoin; like litecoin, ether, dash, monero, zcash, bitcoin cash, among others ». It is added that the word can also be used to refer to “other cryptographic 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 is crap or not and let’s see case by case,” Maslatón said in the space of Twitter in which he participated. For him, “the way to value the utility of a thing is its behavior in the market and there is no other.”
Along the same lines, the lawyer said he did not pay attention to issues such as the network effect, which says that the usefulness of something – for example, bitcoin – increases as more people adopt and use it. “My interpretation of whether something works or not is the price,” he explained.
During his presentation, the Argentine analyst positively valued both bitcoin and ether (ETH) ya cardano (ADA). Regarding this last cryptocurrency, he said that its price could point, in the coming years, towards USD 25. Maslatón also said to operate the CAKE token, of the decentralized exchange PancakeSwap.
In relation to the price of bitcoin, this information portal reported days ago that, according to Maslatón, could arrive to be worth USD 1 million in the year 2025. In a shorter period, according to him, its price could be around USD 95 thousand before the end of the current year.