The post Jupiter Exchange Amends Lending Risk Disclosure appeared on BitcoinEthereumNews.com. Key Points: Jupiter Exchange acknowledges claims of “zero contagion risk” were inaccurate. Claims of vault security were previously promoted but later retracted. Community and competitors question the risk model’s integrity. Jupiter Exchange’s COO Kash Dhanda addressed inaccuracies about the ‘zero contagion risk’ in Jupiter Lend, acknowledging asset recollateralization issues, following community concerns and Kamino Finance’s criticism. This admission impacts trust and risk management in DeFi markets, highlighting lender competition and potential vulnerabilities in Solana’s ecosystem due to asset rehypothecation. Community Backlash and Competitive Repercussions Community reaction intensified after Jupiter Exchange deleted a controversial claim about their lending model, which originally promoted a “zero contagion risk.” Dhanda later clarified in a platform video that Jupiter Lend uses recollateralized assets, contradicting its initial marketing. Due to the revised claims, Solana’s Kamino Finance reacted by blocking Jupiter Lend’s migration tool, citing misleading risk model assertions. This highlights potential systematic risks posed by recollateralized assets, which may affect user trust and lending practices within the Solana ecosystem. Kamino’s actions sparked further debate in the Solana community, questioning the integrity of Jupiter Lend’s risk models. Kash Dhanda stated in a video, “These vaults are indeed isolated,” but admitted recollateralization exists, prompting varied industry responses regarding transparency standards. Kash Dhanda, COO, Jupiter, acknowledging the “zero contagion risk” claim: “This claim [zero contagion risk] … was inaccurate and that the protocol does rely on rehypothecation to boost yields.” Jupiter Token Drop and Regulatory Concerns Rise Did you know? The issue with Jupiter Lend’s recollateralization recalls historical parallel events in DeFi, where under-disclosed rehypothecation led to market disruptions, mirroring the wildcat banking era’s risks. As of December 7, 2025, the Jupiter (JUP) token saw its price at $0.23 and faced a 33.06% decline over the past 30 days, according to CoinMarketCap. The token holds a market cap of… The post Jupiter Exchange Amends Lending Risk Disclosure appeared on BitcoinEthereumNews.com. Key Points: Jupiter Exchange acknowledges claims of “zero contagion risk” were inaccurate. Claims of vault security were previously promoted but later retracted. Community and competitors question the risk model’s integrity. Jupiter Exchange’s COO Kash Dhanda addressed inaccuracies about the ‘zero contagion risk’ in Jupiter Lend, acknowledging asset recollateralization issues, following community concerns and Kamino Finance’s criticism. This admission impacts trust and risk management in DeFi markets, highlighting lender competition and potential vulnerabilities in Solana’s ecosystem due to asset rehypothecation. Community Backlash and Competitive Repercussions Community reaction intensified after Jupiter Exchange deleted a controversial claim about their lending model, which originally promoted a “zero contagion risk.” Dhanda later clarified in a platform video that Jupiter Lend uses recollateralized assets, contradicting its initial marketing. Due to the revised claims, Solana’s Kamino Finance reacted by blocking Jupiter Lend’s migration tool, citing misleading risk model assertions. This highlights potential systematic risks posed by recollateralized assets, which may affect user trust and lending practices within the Solana ecosystem. Kamino’s actions sparked further debate in the Solana community, questioning the integrity of Jupiter Lend’s risk models. Kash Dhanda stated in a video, “These vaults are indeed isolated,” but admitted recollateralization exists, prompting varied industry responses regarding transparency standards. Kash Dhanda, COO, Jupiter, acknowledging the “zero contagion risk” claim: “This claim [zero contagion risk] … was inaccurate and that the protocol does rely on rehypothecation to boost yields.” Jupiter Token Drop and Regulatory Concerns Rise Did you know? The issue with Jupiter Lend’s recollateralization recalls historical parallel events in DeFi, where under-disclosed rehypothecation led to market disruptions, mirroring the wildcat banking era’s risks. As of December 7, 2025, the Jupiter (JUP) token saw its price at $0.23 and faced a 33.06% decline over the past 30 days, according to CoinMarketCap. The token holds a market cap of…

Jupiter Exchange Amends Lending Risk Disclosure

2025/12/07 08:37
Key Points:
  • Jupiter Exchange acknowledges claims of “zero contagion risk” were inaccurate.
  • Claims of vault security were previously promoted but later retracted.
  • Community and competitors question the risk model’s integrity.

Jupiter Exchange’s COO Kash Dhanda addressed inaccuracies about the ‘zero contagion risk’ in Jupiter Lend, acknowledging asset recollateralization issues, following community concerns and Kamino Finance’s criticism.

This admission impacts trust and risk management in DeFi markets, highlighting lender competition and potential vulnerabilities in Solana’s ecosystem due to asset rehypothecation.

Community Backlash and Competitive Repercussions

Community reaction intensified after Jupiter Exchange deleted a controversial claim about their lending model, which originally promoted a “zero contagion risk.” Dhanda later clarified in a platform video that Jupiter Lend uses recollateralized assets, contradicting its initial marketing.

Due to the revised claims, Solana’s Kamino Finance reacted by blocking Jupiter Lend’s migration tool, citing misleading risk model assertions. This highlights potential systematic risks posed by recollateralized assets, which may affect user trust and lending practices within the Solana ecosystem.

Kamino’s actions sparked further debate in the Solana community, questioning the integrity of Jupiter Lend’s risk models. Kash Dhanda stated in a video, “These vaults are indeed isolated,” but admitted recollateralization exists, prompting varied industry responses regarding transparency standards.

Kash Dhanda, COO, Jupiter, acknowledging the “zero contagion risk” claim: “This claim [zero contagion risk] … was inaccurate and that the protocol does rely on rehypothecation to boost yields.”

Jupiter Token Drop and Regulatory Concerns Rise

Did you know? The issue with Jupiter Lend’s recollateralization recalls historical parallel events in DeFi, where under-disclosed rehypothecation led to market disruptions, mirroring the wildcat banking era’s risks.

As of December 7, 2025, the Jupiter (JUP) token saw its price at $0.23 and faced a 33.06% decline over the past 30 days, according to CoinMarketCap. The token holds a market cap of $712.88 million and a max supply of 7 billion. Trading volume fell by 37.38% in 24 hours, with CoinMarketCap data underpinning these figures.

Jupiter(JUP), daily chart, screenshot on CoinMarketCap at 00:30 UTC on December 7, 2025. Source: CoinMarketCap

Coincu research team highlights that regulatory scrutiny may increase as platforms reassess transparency in risk disclosures. As the Solana ecosystem evolves, protocols are expected to adapt security and risk management practices aligning with broader industry demands.

Source: https://coincu.com/news/jupiter-exchange-lending-risk-disclosure/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

XRP Potential Double Bottom Strengthens Amid Ripple’s 250M Transfer

XRP Potential Double Bottom Strengthens Amid Ripple’s 250M Transfer

The post XRP Potential Double Bottom Strengthens Amid Ripple’s 250M Transfer appeared on BitcoinEthereumNews.com. Ripple’s transfer of 250 million XRP to an unknown wallet has immediately altered the short-term liquidity for XRP price, reducing available tokens in sell zones and potentially supporting a bullish reversal. This move coincides with shrinking exchange reserves, signaling tighter supply amid growing buyer interest. Ripple transferred 250 million XRP, impacting circulating supply and exchange liquidity. XRP price shows a potential double-bottom pattern at $1.99, with a key neckline at $2.2443. Exchange reserves dropped 2.51%, while taker buy CVD rose, indicating stronger buyer aggression per CryptoQuant data. Ripple’s 250M XRP transfer tightens liquidity, boosting XRP price potential amid double-bottom signals. Explore how shrinking reserves and rising CVD support bullish trends—stay informed on crypto shifts today. What does Ripple’s 250 million XRP transfer mean for XRP price? Ripple’s transfer of 250 million XRP to an unknown wallet has reshaped the short-term liquidity environment for XRP price by reducing the number of tokens readily available in sell zones. This large movement, often seen as a strategic repositioning, highlights implications for circulating supply and forces traders to reassess market dynamics. As fewer XRP tokens sit in immediate exchange reserves, the transfer could amplify price reactions to buying pressure, especially with supporting on-chain indicators. How is the double-bottom pattern influencing XRP price action? XRP price has formed a potential double-bottom structure around the $1.99 level, where both touches demonstrated strong rejection from buyers, establishing this zone as a critical support. This pattern suggests a possible brief test near $1.90 before advancing, with the neckline at $2.2443 serving as the pivotal breakout point; surpassing it could target $2.5021. On-chain data from TradingView reinforces this setup, as volume profiles align with historical resistance breaks, and expert analysis from market observers notes that such formations often precede 10-15% rallies in similar conditions. Short sentences here emphasize: the…
Share
BitcoinEthereumNews2025/12/07 10:28
Peter Schiff Challenges Trump to U.S. Economy Debate After Bitcoin-Gold Clash with CZ

Peter Schiff Challenges Trump to U.S. Economy Debate After Bitcoin-Gold Clash with CZ

The post Peter Schiff Challenges Trump to U.S. Economy Debate After Bitcoin-Gold Clash with CZ appeared on BitcoinEthereumNews.com. Peter Schiff has challenged President Trump to a public debate on the U.S. economy following Trump’s criticism of his comments on the ongoing affordability crisis. This exchange highlights tensions over inflation, economic policies, and their impacts on everyday Americans amid claims of falling prices and recovery. Schiff’s Challenge: Gold advocate Peter Schiff proposes a debate to discuss Trump’s economic strategies and their role in rising costs. Trump’s Response: The president labels Schiff a detractor and insists prices are dropping, attributing issues to prior administration policies. Broader Context: Searches for affordability have surged 110% year-over-year, reflecting public concerns despite official dismissals, per Google data. Peter Schiff challenges Trump to debate U.S. economy amid affordability crisis and inflation debates. Explore Schiff’s views on Bitcoin vs. gold and policy impacts—stay informed on crypto’s role in financial stability today. What is Peter Schiff’s Challenge to President Trump About? Peter Schiff’s challenge to President Trump stems from a heated exchange over the U.S. economy’s health, particularly the affordability crisis affecting Americans. On December 6, 2025, during an appearance on Fox & Friends Weekend, Schiff highlighted how inflation is accelerating under current policies, exacerbating everyday cost pressures. Trump responded sharply on Truth Social, calling Schiff a “Trump hating loser” and claiming prices are falling dramatically, including gasoline at $1.99 per gallon in some states. Schiff then invited Trump or a representative to debate these economic realities publicly, emphasizing the need for truthful discourse on policy effectiveness. How Does Peter Schiff’s Debate with CZ Relate to Economic Concerns? Peter Schiff’s recent debate with Changpeng Zhao (CZ), founder of Binance, at Binance Blockchain Week in Dubai underscores his longstanding skepticism toward cryptocurrencies like Bitcoin, tying directly into broader economic discussions on inflation and asset value. Schiff argued that Bitcoin lacks inherent value, serving only as a speculative tool…
Share
BitcoinEthereumNews2025/12/07 10:01
Texas Monet Bank Plans Crypto Services as Bitcoin Hits $126K High

Texas Monet Bank Plans Crypto Services as Bitcoin Hits $126K High

The post Texas Monet Bank Plans Crypto Services as Bitcoin Hits $126K High appeared on BitcoinEthereumNews.com. Monet Bank, a Texas-based institution owned by billionaire Andy Beal, has rebranded to prioritize cryptocurrency services, offering secure digital asset banking solutions amid regulatory shifts. This move positions it as a premier provider for crypto custody, lending, and blockchain-integrated transactions, capitalizing on Bitcoin’s 2025 all-time high of $126,000. Rebranding Focus: Monet Bank’s transition from Beal Savings Bank to XD Bank and now Monet Bank emphasizes digital asset innovation for the modern economy. Regulatory Changes: Recent federal adjustments under the Trump administration have eased restrictions, enabling banks like Monet to engage with cryptocurrencies without prior cautions. Growth in Sector: With Bitcoin hitting $126,000 in 2025, institutions such as Monet are expanding services, including blockchain for faster payments, supported by FDIC regulation and over $1 billion in capital. Discover how Monet Bank’s pivot to cryptocurrency services is reshaping banking. Explore secure digital asset solutions and regulatory insights for crypto investors today. (148 characters) What is Monet Bank’s Strategy for Cryptocurrency Services? Monet Bank’s cryptocurrency services represent a strategic pivot to integrate digital assets into traditional banking, providing clients with custody, lending, and blockchain-based transactions. Founded in 1988 as Beal Savings Bank, the Texas institution has undergone two rebrands in 2025—first to XD Bank and now to Monet Bank—to align with the digital economy. This evolution allows FDIC-insured operations while offering innovative tools for cryptocurrency users, backed by less than $6 billion in assets and strong capital reserves. How Does Monet Bank’s Rebranding Impact Crypto Banking? Monet Bank’s rebranding to focus on cryptocurrency services stems from a clear vision to become a leading digital asset financial institution. According to the bank’s official statement, it aims to deliver “innovative and forward-facing solutions for the digital economy,” operating through six Texas offices under strict FDIC oversight. This small community bank, with assets under $6 billion…
Share
BitcoinEthereumNews2025/12/07 09:52