Crypto Lender BlockFi Heading for Bankruptcy!

Crypto Lender BlockFi Heading for Bankruptcy!

by | Dec 9, 2022 | Market News, News

BlockFi, a cryptocurrency lender, announced on Monday that it would be filing for Chapter 11 bankruptcy protection. The company was harmed earlier this month when it was exposed to the spectacular collapse of the FTX exchange. The court filing in New Jersey comes as crypto prices have dropped dramatically. The price of Bitcoin, the most widely used digital currency, has dropped by more than 70% since its peak in 2021.

About BlockFi:

BlockFi is an entire ecosystem for advanced cryptocurrency traders. It has more than one million verified users and assets worth more than $10 billion. BlockFi's customers may appreciate the variety of products it offers. BlockFi is a crypto exchange that also offers low-interest loans, an interest-bearing account with an APY of up to 8% and a crypto rewards credit card. It was established in 2017 and has its headquarters in Jersey City, New Jersey. Reimagining and expanding access to banking resources in communities that traditional banking services had not served is this company's primary mission. BlockFi has grown into a global company with over 800 employees since its inception. BlockFi provides a number of useful products in addition to 13 digital assets that can be purchased. In general, it can be a good choice for experienced cryptocurrency traders.

Factors leading towards BlockFi Bankruptcy:

BlockFi had links with FTX, which petitioned for security in the US recently after brokers pulled $6bn from the platform in the time span of three days, and opponent trade Binance deserted a rescue deal. BlockFi listed FTX as its second-largest creditor in a court filing on Monday, with $275 million owed on a loan extended earlier this year. It stated that more than 100,000 creditors owe it money.

BlockFi was to receive a $400 million revolving credit facility as part of a July agreement with FTX, and FTX had the option to purchase it for up to $240 million. In addition, BlockFi's bankruptcy filing comes after Celsius Network and Voyager Digital, two of BlockFi's largest rivals, filed for bankruptcy in July citing extreme market conditions that had caused losses at both businesses.

During the pandemic, crypto lenders, the de facto banks of the cryptocurrency industry, flourished by offering retail customers interest rates in the double digits in exchange for cryptocurrency deposits.On the other hand, institutional investors who wanted to make leveraged bets, like hedge funds, paid higher interest rates to borrow the money from the lenders, who made money from the difference. BlockFi claimed in its bankruptcy filing that it had appointed Berkeley Research Group as a financial advisor and Haynes & Boone and Kirkland & Ellis as bankruptcy counsel. According to them, a third of BlockFi's $1.8 billion in outstanding loans were unsecured at the end of June.

Can Shiba Inu hit $1 in 2023?

Can Shiba Inu hit $1 in 2023?

by | Dec 9, 2022 | Market News, News, Shiba Inu, Shiba Inu Coin

Take a look at the volatility that cryptocurrency investors have experienced if you think the stock market has been through a bad year. As of the evening of December 1, the total value of all crypto currencies fall by more than 70% to $853 billion, after the aggregate valuation of more than 20,000 digital currencies peaked at $3 trillion approximately 13 months ago.

2021-2022 has been a wild ride for cryptocurrencies, but the Shiba Inu coin has benefited from this situation. Despite its low current value, the Shiba Inu Coin has attracted attention for a variety of reasons. Nevertheless, the coin is establishing itself as an excellent investment option and taking over a significant portion of the crypto market. However, what exactly is Shiba Inu coin and will it be able to reach $1 in 2023? Let's figure it out!

Chances of Shiba hitting $1:

Only 659 merchants accept the token as payment for goods and services at the moment, and if that number does not significantly rise, Shiba Inu will remain on the margins of the financial industry.

To help make the token more useful, Shiba Inu developers are developing new technologies like a complete metaverse. Although the Shiba Inu is not yet available for purchase, some brand-new concept images were made public in the month of November, resulting in some buzz on social media. Owners of virtual land within the virtual world will be able to rename their plots by paying a fee in Shiba Inu tokens when it finally launches.

The price of each Shiba Inu token will naturally rise in proportion as a result of the tokens' burning or permanent removal from circulation. The burning system is a component of numerous Shiba Inu-themed projects, including the Shiba Coffee Organization, pointed toward decreasing the token's tremendous supply of 589 trillion units.

So, can it hit to $1?

Well, with 589 trillion tokens in circulation, the Shiba Inu's total value would rise to $589 trillion at a price of $1 per token, making it the world's most valuable asset. Unfortunately, even the most optimistic crypto investors don't think that's possible, so the only way to get that price is to cut back on supply.

It is highly unlikely that novelties like the metaverse will cause the supply of Shiba Inu to decrease by 99.99998% in order to mathematically bring the price to $1.  In fact, as of this writing, only 30 million tokens have been burned in the last 24 hours. It would take over 64,000 years to reduce the supply enough for Shiba Inu to reach $1 if that rate is maintained at 10.9 billion tokens per year. Therefore, it is likely that investors will be disappointed if they anticipate Shiba Inu is going to rise up to $1 in 2023. To make it happen, the burn rate would have to swell by a ridiculous amount.