Crypto company deathwatch thread

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Got another email. This time from BlockFI

Update to BlockFi Interest Account (BIA) Rates​

BlockFi rates are increasing for BTC, ETH, USDC, GUSD, PAX, BUSD, and USDT across all rate tiers.
We continually set rates based on market dynamics for lending and borrowing. Our goal is to practice sound risk management and maintain earning opportunities for you with our BlockFi Interest Account (BIA).*
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We set rates for the BlockFi Interest Account (BIA) by balancing prudent treasury and risk management principles amid shifting market conditions. Rates on cryptoassets held in BIA are primarily driven by institutional demand for borrowing assets.
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Why are crypto interest rates increasing?
There are three reasons why we’re able to raise rates:
  1. Effective risk management
  2. Decreasing market competition
  3. Changing macro yield environment
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We’ve maintained 100% uptime of our retail platform and institutional lending desk while risk management issues have led competitors to slow down or pause operations. In this time of market volatility, we believe we’ve solidified our position as a lender of choice for high-quality borrowers, resulting in increased pricing power.
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https://blockfi.com/interest-rates-update-july-2022
 
Intresting that blockfi is trying get deposits by spiking the rate. Saw this last night

hasu.png



pointing this article

Looks like they are trying to spike retail holdings to not lose their shirt, putting while risking retail even further
 

Contagion continues in the DeFi Quadrant​

Major crypto lender Three Arrows Capital (3AC) defaults on a $670m loan given by Voyager Digital, cementing rumors of the firm’s insolvency.

  • Fears of the dreaded DeFi contagion were stoked on Monday after Voyager Digital announced that 3AC had failed to meet the necessary payments on its loans of 350m of stablecoin USDC and 15.2k Bitcoin – which, combined, is worth around $670m at today’s prices.
  • Voyager is now looking to turn the ship around, Captain Janeway style… at least according to CEO Stephen Ehrlich who said his team are “pursuing options” to continue to meet customer liquidity demands. Private equity firm Alameda Research have offered their hand in trying to get the warp core back online, financing them with a $500m revolving loan – $75m of which Voyager has already eaten into.
  • VOYG tanked 24% on Monday, down to a price level not seen since July 2020. The drop follows on from a 42% plunge the week prior after Voyager announced its exposure to 3AC and reduced its daily withdrawal limit from $25k to $10k. Fellow crypto lender Celsius halted withdrawals entirely earlier in June – a fate Voyager investors will be hoping isn’t afforded to them.
 
The exchange/app Abra has been offering $70 realbux through ptc sites to sign up and transfer $15 into your account. That can't mean good things. I was vaguely tempted at 2AM, woke up the next morning glad I didn't, because we all know every social security number they collect will be sold to the highest bidder when they go bankrupt.
 
Any idea how big Voyager is? I've seen some talk, but they werent on my radar so not sure how big a deal it is.
 
Pissmaster said:
KF is funded by crypto, so a total evisceration would mean you cumbutts would have to go straight back to Reddit and live out your days dodging tranny jannies.
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You do know you can just mail Null a check, right?
 
lol blockfi is so fucked.


They loaned 3AC 1 billion dollars, 2/3 of the collateral was bitcoin, 1/3 was grayscale trust bitcoin. holy shit lol. And they are trying to get bailed out with 250 mil

Also details are coming out about how fucked Genesis is

Heard they might be tied to Gemini in some way? If so, that would be big. Gemini is one of the better exchanges in the US, its the one ran by the winkelvoss twins.
And all this, going into a holiday weekend for both the US and Canada. Yay fireworks.
 
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Nol 2 said:
lol blockfi is so fucked.


They loaned 3AC 1 billion dollars, 2/3 of the collateral was bitcoin, 1/3 was grayscale trust bitcoin. holy shit lol. And they are trying to get bailed out with 250 mil

Also details are coming out about how fucked Genesis is

Heard they might be tied to Gemini in some way? If so, that would be big. Gemini is one of the better exchanges in the US, its the one ran by the winkelvoss twins.
And all this, going into a holiday weekend for both the US and Canada. Yay fireworks.
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Wow, this whole industry was even more incestuous than I ever could've imagined. Guess it just cements the collapse of the whole sector.

Ponzi's are prone to collapse after all.
 
ditto said:
Hope that Zuck is somehow tied up in this too. I know his annoying sister has been shilling NFT lately.
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lol. Didn't they get their money from suing zuck over facebook? I would be shocked if he gave anything they are involved in a single penny.
 
Maybe once all this investment shit has collapsed around people we can let crypto go back to just being a cheap decentralized currency instead of a store of value/investment token. I miss back when I could use BTC and shitcoins as a way to privately send money to friends without the fees costing as much as what I'm sending. As a plus, without all the investment money drawing FTC attention, there's a super tiny chance we might be able to avert further regulation and federal lockdown of the space.
 
Baguette Child said:
Maybe once all this investment shit has collapsed around people we can let crypto go back to just being a cheap decentralized currency
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You know that ship has sailed right? Not because of the scammers and grifters, but once you decentralize more than a ledger, things can get really interesting.
Or maybe it hasn't, everyone knows high fees suck, and there are currently ways being looked into to resolve the issue (see L2's) but they also suck in their own unique ways.

New things > Old thing. When the sort of people who insist that the only value is old thing, and all the new things are entirely ponzi's, why are you surprised that the people working on this stuff tend not to prioritize what you (in the general sense, you just happen to share a very common viewpoint) think is important?
 
Baguette Child said:
I miss back when I could use BTC and shitcoins as a way to privately send money to friends without the fees costing as much as what I'm sending.
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This is a real pain in the buttocks. When I started donating to the forum I did it in ETH, but you all know how much that costs in gas. Now of everything Null takes, ADA is the cheapest for me to send. If it's not blockchain fees it's withdrawal fees from CEXs (and you have to onboard somewhere). If I need to send crypto from one place to another I'll often roll it up into XRP, send it, and exchange it again at the other end back into whatever it was, because it works out cheaper.
 
Anyone who is either wrapped up in the Celsius situation, or just generally interested, should check this out. Lots of hopium, but also just an interesting interview in general. Sounds like it may not be as dire as it seems, Simon brings up some interesting historical examples of previous times similar things have happened.

Summary (from a person with a bad memory for these sorts of things)
Previously, when an exchange fucked up and either gets hacked or goes full degen with its investments, it still has options to make things right.
For example one exchange got hacked, bitcoin was stolen, they were short $100mil+. They issued and distributed a token representing this debt. You could buy/sell it for market value (which was .30c at the launch day) or exchange it for $1 of stock in the exchange (or something like that). Eventually bitcoin went on a bullrun and everyone made their money back, but it took a while.

Mathemagics and Deep Yiddish Finance are a mystery to me. Just watch it if you're interested, the portion before the Q&A is the most interesting bit and its not that long.

 
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I didn't watch the video because crypto youtubers are full of shit and entirely controlled assets at the best of times, but tokenized assets are entirely a thing. If they were really good, they would have the entire thing as a smartcontract and burn the admin key once its setup.

Their problem is that they were trusted to do the right thing and they obviously didn't (and then the founder tried to run to Israel before the feds stopped him). They need to earn the trust back, and who would trust them not to take whatever money they can and run?

Well, looks like Blockfi took the FTX deal (400 mil line of credit, and 250 mil buyout price if that isn't enough to right the ship) so retail should be made whole. Just for Sam getting another feather in his hat.


And Voyager has halted withdrawls.


And, 3AC has officially declared bankruptcy

 
Be sure to buy into crypto when this shit crashes to nothing. Once the regulators step in which they will this portion of economy is going to be a steady up from now... Backed by government.

This is like dotcom bubble. Blockchain technology is going to be owned and managed by the big boys now. They are going to swoop in and buy it all up... Again.
 
HOMO FOR LIFE said:
Be sure to buy into crypto when this shit crashes to nothing. Once the regulators step in which they will this portion of economy is going to be a steady up from now... Backed by government.

This is like dotcom bubble. Blockchain technology is going to be owned and managed by the big boys now. They are going to swoop in and buy it all up... Again.
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Damn, finally... Facebook/Meta Crypto and NFTS were cringe the moment it was on Zcuck's Head like myspace. Now we can enjoy Tiktoks of Cryptobros being Homeless.
 
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