Cryptocurrency Q&A
What are the disadvantages of pledge fund?
What are the disadvantages of pledge fund?
Andrea
Sun Nov 03 2024
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6 answers
1486
I want to know the downsides or negative aspects of investing in a pledge fund. What are the potential risks or disadvantages that I should be aware of before making a decision to invest in such a fund?
6 answers
BlockchainLegendary
Tue Nov 05 2024
When an investor fails to repay a loan secured by pledged shares, the lender has the right to take action.
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ShintoBlessed
Tue Nov 05 2024
The lender can sell the collateralised shares to recover the loan amount in case of default.
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DaeguDivaDance
Tue Nov 05 2024
The sale of these shares by the lender can potentially lead to a decrease in their market value.
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CryptoTitan
Tue Nov 05 2024
This price decline can have adverse effects on all shareholders of the company.
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Valentina
Tue Nov 05 2024
Share pledging carries inherent risks, particularly the risk of default.
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