What is the impact of the Texas ratio formula on the cryptocurrency market?
Miriam FisherNov 24, 2021 · 3 years ago1 answers
Can you explain the Texas ratio formula and how it affects the cryptocurrency market? How does it relate to the stability and health of the market?
1 answers
- Nov 24, 2021 · 3 years agoThe Texas ratio formula is a metric that can be used to evaluate the financial stability of banks and cryptocurrency exchanges. It compares the amount of non-performing assets to the amount of tangible common equity. In the cryptocurrency market, a high Texas ratio can indicate that an exchange is at risk of insolvency or financial distress. This can have a negative impact on the market as it may lead to a loss of funds and decreased confidence among investors. It is important for investors to consider the Texas ratio when assessing the health and stability of cryptocurrency exchanges they are using.
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