Dogecoin has a higher short interest rate than coins like bitcoin or ethereum thats, a problem when you have a quick turnaround and you have a high short interest, thats, a big problem. If youre in exchange, welcome back youtube, crypto.com removes dogecoin from its earned program. Its crypto earned program – this is a really big deal for a number of reasons and im going to dive into that in this video, but first off, i want to say that i do not believe this is a completely bad thing, but i do think the timing Of this is very interesting, especially considering what just happened across the board with meme tokens, because you see that this happened with shiba inu as well. There are several things that we have to consider thats going on right now, if were going to dissect, actually whats going on here. The first thing is that is that were no longer in a bull market, and we know that were having low volume across the board. We also know that especially coins like dogecoin. We also know theres a record amount of coins, thats actually being removed from the exchanges. So we know that we have low volume and they have a decreasing supply that they have access to, and we know that crypto.com is one of the, if not the leading platform when it comes down to the earn program. So this means they have less access and lower volume to deal with this all comes down to risk management.

Lets take a look at what theyre actually doing, because this program goes by a number of names. It has. The urn program staking yield farming. All this kind of stuff like that, but it pretty much comes down to be in a nutshell, roughly about the same thing, which is basically lending crypto. It gets even more trickier if theres a wrap around token or something like that, but in the nutshell, youre lending. Your crypto to the exchange and in turn, theyre going to lend it again. So basically, your coins are getting linked, basically twice before theyre, reaching the ultimate goal, where theyre going to be used to generate revenue, additional revenue for the exchange in return for you lending them. Your coins and then making additional revenue theyre going to give you a little kickback, even though, if them lending your coins is going to be negative for your coin in the short term, possibly even in the long term, depending on these positions and what the overall damage That they do to the coin. If you compile all of this low volume, people removing their coins and the fact that you have a potential for a downward market here in the foreseeable future, because we have so much uncertainty going on the risk management for these crypto lending programs is increasing dramatically. And if you have someone thats on your team, your risk management manager or something like that, theyre going to relay this information to you and say that hey these are becoming more risky by the day.

So if youre a responsible broker, typically, you will remove assets that people are shorting for the short term people are holding for the short term, because you have to consider dogecoin has a shorter turnover rate than coins like bitcoin or ethereum. Dogecoin has a higher short interest rate than coins like bitcoin or ethereum thats, a problem when you have a quick turnaround and you have a high short interest, thats, a big problem if youre in exchange. So, in my opinion, i believe crypto.com kind of took this into consideration and they said that hey. This is getting risky for whats going on here. We dont want to put ourselves in a position to get squeezed or to have a record amount of coins, come off and us not be able to produce the coins. And we end up in like a robin hood situation, and i think this is responsible of the brokerage, because, technically speaking, most companies dont make this adjustment until they get caught or something dramatic happens, and they have to turn off withdrawals or stop people from having access To their coins, so if theyre doing this ahead of time, theyre saying hey were going to remove this. I can respect that. I also dont believe this is a bad thing, because when you come when it comes down to actually lending the coins or people having access to them for shorting and stuff, like that, the less people that have access to the coins or the less programs or exchanges That are actually offering this service, the better it is for the more to get to a more natural price movement of the coin.

So, in my opinion, i do believe this is really great when it comes down to the overall health of the coin and it reaching a natural equilibrium of price. And i also want to show you something on the charts that make a lot of sense as well, because well see. We now have three consecutive days of massive short positions being closed, and this could very well be because of this move here. That crypto.com is doing. Crypto.Com is closing out this platform, because crypto.com could have very well been one of the largest leaders when it comes down to actually lending out these crypto and if they send out a notice saying hey, look were no longer going to land on this program or stuff. Like that, you can have people close off those short positions which, in return, could be a reason for this massive run up that weve seen because when you close out a short position, you technically have to buy the crypto to close off the short position. When you short its a promise to buy basically later, but it creates an immediate sell order, so that would mean that the shorters would have to buy the dogecoin and then, of course they could just simply sell it back into the market. But temporarily will have a really big run up to consolidate those buy orders which it looks like thats kind of whats happening right now. We can take a look at this here on the charts, so this is the what i was speaking of the three days that weve had these really big red candles coming down in dogecoin, so were pretty much almost at our 72 day moving average and coming back Down to our 200 day, moving average, the 21 day moving average is already beginning to curve back down.

This is dramatic movement to um get out of these short positions. I believe this is a great thing for the overall health of the coin, and i also believe that its a smart business decision by crypto.com, i know a lot of people weve seen mixed reviews over you know. Rather not, this is good, or this is bs and stuff like that. But in my opinion, if you look at the underlying message here and you time it with the fact that meme coins just literally had a rally and now theyre coming saying that were removing you from our program, i think it paints a clearer picture. As far as whats going on, but also provides the opportunity here for us to see a more natural price movement and some of our favorite coins, i know some people are upset, but im actually very happy about this movement because we need to own our own wallets And not have our coins on the exchanges, its of no benefit for the exchange to be your wallet, even though, even if theyre offering you some yield farming staking or earn programs whatever they want to call it. You know theyre going to use it to make additional revenue, put your own coins in your wallet and, if youre looking for a cold wallet, i have a link to ledger, in my description section its directly to the website its directly to the manufacturer. So no malware. No bs, no glitches and stuff like that, so youre going to lose your crypto and well be one more doge, going closer to having a fair price for the coin.

If youre looking to generate some extra revenue as well, mumus giving out 10 free stocks for signing up and depositing any amount, and of course you can always convert that into whatever you like cash or different stocks, the link is in the description section as well. I hope this video finds you well like the video share the video subscribe to the channel for more. I appreciate all of you.

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