Currently, their prices are in a downtrend and there are many loans with high LTV ratios. This is like a dam, which can break at any moment. To keep the tail from happening, it is imperative that whales absorb the supply from over-leveraged and unpayable trades. However, this is quite difficult!
At the same time, many people are also quite bearish because Degods promises to launch Season 3 this year. Fear of an event similar to Azuki’s dump recently. For those who do not know about LTV ratio ( Loan to Value ratio ).
LTV is an important indicator used in the financial industry, especially in the borrowing sector. LTV is calculated by dividing the loan amount by the actual value of the property you are borrowing. For example, if you borrow VND 100 million to buy a house worth VND 150 million, the LTV is 100/150 = 0.67, or 67%.
This ratio represents the percentage of the loan amount compared to the actual value of the property.
When the LTV is high, it means you are borrowing a larger portion of the property’s true value. This creates a higher level of risk for the lender, as if property values fall or the property market deteriorates, the borrower may have difficulty repaying the loan. As a result of assets being liquidated, loan cash flow is squeezed when risks increase. These continue to be exacerbated by the market’s decline.
Be careful!
