Part 1: Centralized Crypto-Backed Loans are a Ticking Time Bomb

A discussion about cryptocurrency-backed loans, and why it made me late paying rent.

This is a two-part series which outlines the problems that exist amongst crypto-backed lending solutions today. The first post in our series focuses on the issues surrounding centralized lending solutions such as SALT Lending, NEXO, and BlockFi.

You can read Part Two about decentralized lending solutions here.

In September of last year, for the first time in my life, I was late paying rent and nearly evicted. Why? Because cryptocurrency-backed loans give me grief. Allow me to explain…

Crypto-backed loans — A brief primer

Deposit your bitcoin, ether, or some other crypto-asset as collateral, and get cash or stablecoin back as a loan. Keep HODLing. No selling. No capital gains tax. Sounds simple enough, right?

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