Bankless · Monday, September 14, 2026
The October 10th (10/10) market crash, while devastating for many, inadvertently boosted interest in crypto options. Nick Forster explains that the crash highlighted the path dependency and liquidation risks of perpetual futures, driving speculators to explore options for more defined risk profiles and yield generation opportunities previously unavailable due to the collapse of basis trades and token valuations.
“I think what 1010 did was showcase a couple of things. One was that like it obviously the obvious point is that perps are very path dependent and you can do everything right and be delta neutral and manage your risk and yet still get blown out on like a scam whip to the downside.”
“And the second was it crushed a ton of token valuations across the space. And there were a lot of teams kind of playing this game where you would sell tokens pre-TGE and get TVL into your protocol and make it look like you had traction.”
“So at that point, you have this really nice beginning of an inflection point for options where the speculators started looking into it. And also on the yield generation side, it was the only place you could earn yield in crypto and it has been sustainably really for the last year at institutional scale.”