Centralized Crypto Lending Platforms Are Going Bankrupt
Centralized crypto lending platforms are going bankrupt left and right. I want to discuss who I think is next, who will survive, and if there’s something sketchy going on as crypto lenders seemingly begin to form a monopoly.
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While many lenders are going bankrupt like Vauld, Three Arrows Capital, Celsius, and Voyager combined with Blockfi being bought out for a tiny amount people are apprehensive about the crypto space.
Interestingly enough, Nexo has offered to buy out Celsius and Vauld in the last couple of months and it just so happens they are owned by Blackrock. Blockfi was bought out for just 25 million by FTX, a tiny amount though FTX is also an exchange and not just a lender.
Blackrock was accused of being part of the downfall of UST which I don’t see as unfounded given they back Coinbase who also offers lending and upholds UDSC, the second largest stablecoin in the market. It turns out they own Verizon which owns Yahoo which owns TechCrunch who started Nexo. So whether or not Blackrock is closely involved in what they do, they also seem to be attached to massive crisis situations that happen in the cryptocurrency market.
I personally expect Crypto.com is the next to go down, but there is no evidence to prove that would be the case aside from them pulling back on their interest rates given out, and slashing various rewards & benefits from their card and platform. All their money has gone into marketing like their 700+ million dollar deal to change the Staples Arena to the Crypto.com Arena. However, they do still have an exchange keeping them afloat so it’s hard to say.
The main competitors now it would seem are mostly exchanges that also offer lending, but in the lending only department, Nexo is taking over most of its competitors.
I’ve already covered this before so this will be my last video most likely covering lending, but this serves as a continued reminder to just stay away from lenders and keep your crypto in your own wallet.
Did you get hurt by these lenders going bankrupt? Do you lend crypto at all? Do you still trust and use Defi? Let me know what you think about this in the comments below and don’t forget to subscribe!
*Disclaimer: This is not financial advice and is purely for entertainment purposes. What you see, hear, or read is my personal opinion, and any statements made are based on my views and should not be misconstrued as fact. My crypto portfolio may or may not be simulated*
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