Galaxy Warns Crypto Treasury Firms: Repeating History’s Mistakes Could Be Costly

Crypto's Wild West mentality meets Wall Street's memory gap.

Galaxy Digital's latest warning shots across the bow of crypto treasury management should have TradFi veterans chuckling into their bourbon. The same firms chasing 20% yields on stablecoin deposits today are forgetting 2008's most painful lesson: when liquidity vanishes, even 'risk-free' positions implode.

Yield-chasing deja vu

Algorithmic stablecoins aren't mortgage-backed securities. But the behavioral parallels are eerie—from overconfidence in mathematical models to the blind faith that 'someone else' will exit first. Galaxy's report stops short of naming names, but the targets are clear: any treasury still pretending CeFi yields come without CeFi risks.

The crypto cycle continues

Three bear markets should've taught this industry that 15% APY doesn't appear by magic. Yet like clockwork, each bull run brings fresh justification for ignoring fundamentals. 'This time it's different' remains the most expensive phrase in finance—especially when whispered by founders wearing FTX-branded parachute pants.