Defillama Founder 0xngmi Critiques Bitcoin Leverage Firms Amid Class-Action Lawsuit

On May 19th, 0xngmi, founder of Defillama, provided insights on the ongoing class-action lawsuit against Strategy. He remarked that the core of the complaint revolves around allegations that the firm significantly underestimated potential losses tied to Bitcoin’s volatility. 0xngmi emphasized the inherent risks associated with investing in companies that specialize in Bitcoin leverage, noting, “Investors should fully understand the implications of market dynamics, especially during downturns.” This commentary serves as a stark reminder for investors to conduct thorough due diligence before engaging with firms that operate in the high-stakes realm of cryptocurrency leverage. As Bitcoin continues to experience fluctuations, stakeholders are increasingly urged to consider their risk tolerance and the credibility of the managing entities.