History shows that almost all non-banks die during liquidity crises precisely because the asset/liability mismatches that are the basis of their business models become untenable when there is a run on their funding. There is no central bank or government support to bail them out because they exist outside the prudential regulatory net that is designed to save banks during such times. Think Aussie, RAMS and Wizard during the GFC in Australia, or Lehman Brothers in the US.
And that is exactly what many crypto businesses, including exchanges and stablecoins, face right now: a failure of trust that has precipitated a run on their liquidity. It is no different to a bank run wherein droves of depositors desperately seek to withdraw cash because they fear the bank will blow up.
FTX collapse: Crypto crash has further to go (copyright link)
