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Finblox becomes latest crypto lending platform to report difficulties

Crypto savings platform Finblox posted a Twitter statement on June 16 informing users of a freeze on rewards and the imposition of a daily withdrawal limit.

The notice refers directly to the unfolding situation at Three Arrow Capital (3AC), which is rumored to be insolvent — having incurred liquidations of at least $400 million.

Finblox lists 3AC as an investment backer and Sequoia and Dragonfly Capital, among others.

@cybercodetwins said it was common practice for 3AC to manage the treasuries of companies it backs with investments.

The Finblox business model is to generate a yield from users’ deposits through strategies that include lending to institutions and DeFi protocols. It offered users up to 90% APY on Axie Infinity (AXS) deposits, but other offerings were more in line with industry standards.

The Finblox statement

The statement opens with an acknowledgment of the current market conditions and how it has impacted 3AC.

It added that the firm has been with working with eight partners and protocols to “generate yields and spread the risk as evenly as possible.” Having evaluated the results of this, the following actions come into force:

  • pause rewards for all users
  • limit withdrawals to $500 daily, up to a maximum of $1,500 per month for all tiers
  • delay referral rewards
  • put a halt to new user accounts

“Ultimately, Finblox will do everything in its power to protect our users’ funds and reinstate our services in full. We will provide you with updates and inform you of any new developments as soon as possible…”

3AC on the ropes

Meanwhile, rumors abound that 3AC could not meet its margin calls over the weekend, adding further pressure on token prices.

Andrew Thurman, an Analyst at Nansen, who has been monitoring the firm’s positions, said 3AC is “reshuffling major portions of their holdings” as a result. The shuffle would likely include assets held in investee firms.

“I don’t want to comment on what that might mean for their health, but it’s clear that they’re reshuffling major portions of their holdings.”

Head of Trading at 8Blocks Capital, Danny Yuan, described the situation as the “3AC contagion.” Giving further insight, Yuan said 3AC were over-extended and over-exposed. Moreover, he said that rather than meeting margin calls, 3AC “ghosted everyone.”

The post Finblox becomes latest crypto lending platform to report difficulties appeared first on CryptoSlate.

Retail Investors Buying the Bitcoin Dip: Analysis

The past months have been long and bumpy for Bitcoin, which took yet another plunge below the psychological level of $20k. But that isn’t stopping the retail investors from buying the dip. Investors, both big and small, have lost significant money on their Bitcoin bets. But latest data from IntoTheBlock suggest that retail is stacking::Listen

The past months have been long and bumpy for Bitcoin, which took yet another plunge below the psychological level of $20k. But that isn’t stopping the retail investors from buying the dip.

  • Investors, both big and small, have lost significant money on their Bitcoin bets. But latest data from IntoTheBlock suggest that retail is stacking again.
  • The crypto-analytic platform revealed that the balance held by traders has increased to the highest levels since January of this year.
  • This cohort of entities ramped up their holdings by 28.81% in 30 days, climbing to 2.13 million BTC on June 24th.
  • Checkmate, a lead on-chain analyst at data firm Glassnode, also revealed a similar trend.
  • It was observed that not only the smallest retail investors with 10 BTC or less in their wallets but the whales were also stacking. The latter group is moving coins from exchanges to private wallets suggesting an imminent price bottoming.
  • JP Morgan strategists had recently speculated that the deleveraging in the crypto market might soon end, and a bottom may be near.
  • Bitcoin miners, on the other hand, have resorted to selling their tokens amidst high energy costs as the market tanked over the past few months.
  • Among the high-profile hoarders is the cloud software company MicroStrategy which announced another Bitcoin purchase worth $10 million despite the falling market.

Finblox becomes latest crypto lending platform to report difficulties

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