Strive exec says leverage liquidation, not credit issues, caused recent stock drop

Jeff Walton, Chief Risk Officer (CRO) at Strive (ASST), has attributed the recent decline and subsequent rebound of the company's preferred stocks, STRC and SATA, to leverage liquidation and strong selling pressure rather than deteriorating credit quality. According to CoinDesk, on June 18, STRC fell to a low of $82.53 before bouncing back to around $90.50. Similarly, SATA's price dropped into the low $90s before recovering to approximately $98.59. Walton explained that the situation was more akin to a forced sale than a collapse in the DeFi market. He stated that holders selling the products triggered liquidations elsewhere in traditional financial markets and that he does not believe the issue originated from DeFi protocols. Walton added that such volatility is part of the maturation process for a new asset class.