BlockFi a Crypto Saving Account Service is Near Bankruptcy

BlockFi a crypto saving account service and lending platform is near bankruptcy, although it over collateralizes borrowers.

FTX US bailout BlockFi with $400 million credits and acquisition by FTX is under the process. BlockFi announced temporarily withdrawal halt as it evaluating FTX’s situation.

UST and Luna clash were the main trigger that caused a problem for BlockFi. This situation provoked liquidity problem in the platform. BlockFi received credits from FTX to increase liquidity.

During 2nd quarter of 2022. BlockFi 600 million loans do not have covered collateral. It lend out $1.8 billion and only possess $1.2 billion in collaterals.

Why BlockFi is attractive?

Before crisis occurred BlockFi saving account yield is about 7%

BlockFi Risks

1. Centralized

Unlike Uniswap BlockFi is a centralized company.

2. No money protection

BlockFi is not a bank, there is no money protection law apply for BlockFi.

List of crypto saving account service by brands

1. BlockFi

2. Celsius (already went bankrupt)

3. Coibase

4. crypto.com

5. Nexo

6. Gemini