2025-12-09 15:52:35

This time, the SEC rejected applications for 3x and 5x leveraged ETFs, and honestly, it helped the market dodge a bullet. We looked at historical data—in the past 5 years, the underlying assets mentioned in these applications experienced over 350 instances of single-day swings greater than 33%. What does that mean? If these were actually approved, there would be an average of one forced liquidation per week. If the 5x leveraged products had gone through, the frequency would only be higher.

Even the issuers of 3x leveraged products are probably relieved—who wants to deal with liquidation headaches every day? The existing 2x single-stock leveraged ETFs are already exciting enough, with plenty of volatility. Sometimes, strict regulation actually protects everyone.

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MemeTokenGenius

· 21h ago

The exchange clears once a week, and these numbers are shocking. This wave by the SEC has indeed saved many retail investors' lives. --- 5x leverage? Wake up, everyone. That's just a casino, no different. --- Alright, I admit the regulation this time is justified. It saves me from watching the liquidation dramas every day. --- Speaking of which, 2x leverage is already enough for me. Anything higher would really be playing with fire. --- Honestly, the strict regulation is a bit annoying, but after seeing these numbers, I understand... Who can withstand a weekly liquidation? --- The issuer relaxes, retail investors relax too. It's those who want to go in with 5x leverage who should be crying haha. --- 350 times with 33% volatility—if this gets approved, it’s basically a ticking time bomb. I’m impressed with the SEC’s decision this time. --- I just want to ask, what are those who want 3x and 5x leverage thinking? Do they really believe they can dodge a crash? --- In fact, with such high liquidation frequency, the exchange’s transaction fees must be bankrupt haha. --- Honestly, it’s still about protecting retail investors, although sometimes the regulations can indeed be frustrating.

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SleepyArbCat

· 12-10 16:09

Well... this move by the SEC is essentially prolonging the life of the retail investors. They clear out positions about once a week on average, which means how many people are getting liquidated.

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ColdWalletAnxiety

· 12-09 16:20

Weekly liquidation? What's the point of playing... 2x is enough to give me a heart attack, 5x is basically giving your money away.

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TokenomicsPolice

· 12-09 16:15

A liquidation once a week? That means every week we’d be watching a liquidation feast. The SEC is really saving the market this time. --- That 5x leverage thing is a ticking time bomb—anyone who touches it is doomed. --- But seriously, even 2x is wild enough now. If they double it, retail investors will lose everything they have. --- Issuers must be relieved now—no more cleaning up messes every day. This regulation actually makes sense. --- Forced liquidation every week? Oh my god, is this helping the market or just creating a massacre? --- 33% volatility that often is insane. If this actually gets approved, it’s a harvesting machine. The SEC has finally woken up.

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SelfMadeRuggee

· 12-09 15:56

Liquidation once a week? This isn’t trading, it’s a gambling machine. The SEC’s crackdown is justified. --- If the leverage had really been 5x, I’d have gone bankrupt long ago. Glad I wasn’t that foolish. --- Honestly, 2x leverage is already enough for me. Any more is just asking for trouble. --- The issuers must be thrilled—no more dealing with messes every day. This time, the regulators are truly looking out for everyone. --- Forced liquidation once a week—just thinking about it is insane. Products like this really shouldn’t exist. --- Actually, sometimes getting restricted is a good thing. Saves me from self-destruction.

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ReverseFOMOguy

· 12-09 15:53

Hi, the SEC move is really something—350 major fluctuations, that's like an average of one liquidation per week? Imagine how many people got liquidated. 2x leverage is already enough to play with, but some people insist on risking it with 3x or 5x. Dodged a bullet this time for sure. Honestly, sometimes getting blocked is a blessing. Not everyone can handle that kind of thrill.

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