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crypto lending

Crypto Lending Company Blockfi Cuts Staff by 20%

13/06/2022 by Idelto Editor

Crypto Lending Company Blockfi Cuts Staff by 20%

On Monday, the cryptocurrency lending company Blockfi announced that “market conditions” have had a “negative impact” on the firm’s business and it will be laying off “roughly 20%” of its staff. The message written by Blockfi co-founders Zac Prince and Flori Marquez follows a slew of well known crypto firms cutting back employees due to the bear market.

Blockfi to Lay off ‘Roughly 20%’ of Its Workforce


Digital currency values are not that hot these days, and the crypto economy slipped below the $1 trillion region on June 13. The entire crypto economy shed more than 14% in USD value during the past 24 hours. Crypto prices have steadily dropped for weeks on end and Monday’s market rout was quite gruesome. The leading crypto asset bitcoin (BTC) slid to a low of $22,600 on Monday, and a myriad of other alternative digital assets saw deeper losses. Amid the last few weeks of the crypto economy’s bear market downturn, digital currency companies have been laying off staff.

On June 13, Blockfi joined the slew of companies laying off workers, as it noted that roughly 20% of its staff would be let go. “We’ve been through several tough days at Blockfi in the past, but today is probably the hardest,” the Blockfi co-founders wrote. “Like many others in the tech industry, we have been impacted by the dramatic shift in macroeconomic conditions worldwide. We are in the gut-wrenching position of needing to reduce our headcount today. This is not a decision we take lightly and candidly is one that brings us great sadness.”

The message from Prince and Marquez adds:

We are reducing our headcount by roughly 20% and the reduction impacts every team at the company. This decision was driven by market conditions that have had a negative impact on our growth rate and a rigorous review of our strategic priorities.

Co-Founders Insist ‘Blockfi Is Here for the Long Haul’


Just recently, Bitso announced layoffs and Buenbit cut staff back as well. Furthermore, Coinbase revealed it had to “rescind a number of accepted offers,” and Gemini cut its staff by 10%. The crypto businesses Rain Financial and the Latin American crypto exchange 2TM have also cut employee counts.

On Monday, the Blockfi co-founders stressed that the decision was painful for Blockfi’s management. “Today is a painful day for Blockfi but more so for employees who we have to part ways with,” the blog post says. “We are doing everything in our power to treat all of our impacted colleagues with the empathy and compassion that they deserve.”

Despite the setback, Blockfi’s co-founders remarked that the company will be sticking around for a long time. “For our remaining 600+ colleagues and our clients, partners, and stakeholders who have supported us worldwide – we are steadfast in our commitment to ensure Blockfi is here for the long haul,” the co-founders said.

What do you think about Blockfi laying off 20% of its workforce due to the market conditions having a negative impact on the startup? Let us know what you think about this subject in the comments section below.

Filed Under: $20, 2TM, Bear Market, Bitso, Blockfi, Blockfi layoffs, Blog Post, Buenbit, Coinbase, colleagues, crypto companies, crypto lending, crypto lending company, crypto market carnage, Employees, English, Flori Marquez, Gemini, lay-offs, News, News Bitcoin, Rain Financial, staff, zac prince

First for SEC: Crypto Lending Platform Charged — Blockfi Agrees to Pay $100 Million in Penalties

14/02/2022 by Idelto Editor

First for SEC: Crypto Lending Platform Charged — Blockfi Agrees to Pay $100 Million in Penalties

The U.S. Securities and Exchange Commission (SEC) has charged cryptocurrency lending platform Blockfi in a first-of-its-kind action. The crypto lender has agreed to pay $100 million to settle the charges and pursue necessary registrations.

SEC Charges Crypto Lending Platform Blockfi

The U.S. Securities and Exchange Commission (SEC) announced Monday that crypto lending platform Blockfi has agreed to pay $100 million in penalties.

The SEC explained that “In this first-of-its-kind action,” it “charged Blockfi Lending LLC with failing to register the offers and sales of its retail crypto lending product, Blockfi Interest Accounts (BIAs).”

SEC Chairman Gary Gensler commented:

This is the first case of its kind with respect to crypto lending platforms.

To settle the SEC’s charges, Blockfi agreed to pay a $50 million penalty and cease its unregistered offers and sales of the lending product. The company also agreed to pay an additional $50 million in fines to 32 states to settle similar charges.

Blockfi offered and sold BIAs to the public from March 4, 2019, until today, the SEC detailed. Investors lent their crypto assets to the company in exchange for monthly interest payments.

According to the SEC, BIAs are securities and must be registered with the Commission. Furthermore, the securities regulator said that Blockfi operated for more than 18 months as an unregistered investment company.

As part of the settlement with the SEC, Blockfi agreed to pursue the registration of its cryptocurrency lending product within 60 days. Its parent company also intends to register under the Securities Act of 1933 the offer and sale of a new lending product.

“Today’s settlement makes clear that crypto markets must comply with time-tested securities laws,” SEC Chair Gensler opined, elaborating:

It further demonstrates the Commission’s willingness to work with crypto platforms to determine how they can come into compliance with those laws.

In September last year, the Nasdaq-listed cryptocurrency exchange Coinbase got into trouble with the SEC over its plan to launch a lending product. However, after the securities watchdog threatened to sue the company if it proceeded with the launch, Coinbase shelved its plan.

What do you think about Blockfi having to pay regulators $100 million in fines for offering an unregistered lending product? Let us know in the comments section below.

Filed Under: Bias, Blockfi Interest Accounts, blockfi sec, Coinbase, Coinbase Lend, crypto lending, cryptocurrency lending, enforcement action, English, Gary Gensler, lend, News Bitcoin, Regulation, SEC, SEC blockfi lawsuit

SEC Allegedly Probes Operators Behind World’s Largest Decentralized Exchange, Uniswap: Report

03/09/2021 by Idelto Editor

SEC Allegedly Probes the Operators Behind the World's Largest Decentralized Exchange Uniswap: Report

According to a recent report, the U.S. Securities and Exchange Commission (SEC) has allegedly started probing the startup that operates the decentralized exchange (dex) Uniswap. The dex platform Uniswap is the largest dex in terms of trade volume with over $10 billion in crypto tokens swapped in the last seven days. Sources from the report also said SEC enforcement is investigating crypto lending applications as well.

Unnamed Sources Familiar With Matter Say SEC Is Investigating Defi Exchange Uniswap

A recently published report from the Wall Street Journal’s (WSJ) Dave Michaels and Alexander Osipovich claims unnamed sources told the outlet that SEC enforcement attorneys are probing the dex Uniswap Labs. The report shows that the SEC has not commented on the matter but a Uniswap Labs spokesperson said:

[Uniswap is] committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.

The unknown informants told the WSJ that the SEC enforcement officials want to know how Uniswap is marketed, and it wants information on crypto lending applications. The “people familiar with the matter” said that the SEC wants to find out if the dex or lending applications “resisted oversight.” The investigation seems to be a developing story and the WSJ says no allegations have stemmed from the informant’s information.

Uniswap Commands More Than 60% of Ethereum-Based Dex Trade Volume, Uniswap Labs Recently Removed 100 Tokens

Uniswap is the largest dex by trade volume today and as more than a dozen dex platforms including Uniswap captured $16 billion this week in volume, Uniswap commanded $10.3 billion of that volume. Uniswap commands 65.1% of all the dex trade volume (Ethereum dex platform volumes only) on Friday morning (EST), according to Dune Analytics stats.

News of the alleged probe into Uniswap Labs follows the flak the company got for removing 100 tokens from the main user interface at the end of July. It was assumed at the time that some of the 100 tokens listed could be deemed unregistered securities by U.S. regulators. “These tokens have always represented a very small portion of overall volume on the Uniswap Protocol,” Uniswap Labs wrote at the time.

The story concerning the SEC allegedly investigating the world’s largest dex application is still developing and we promise to keep our readers informed of any updated information pertaining to this topic.

What do you think about the report that says the SEC may be probing the world’s largest dex platform, Uniswap? Let us know what you think about this subject in the comments section below.

Filed Under: 100 tokens removed, crypto lending, defi, dex application, dex trades, English, News Bitcoin, Regulation, regulator, SEC, SEC enforcement, trade volume, Trades, uniswap, Uniswap Labs, Uniswap protocol, WSJ, WSJ reporters

Genesis Doubles Crypto Loan Issuance for the Third Quarter to $5.2 Billion

01/11/2020 by Idelto Editor

Genesis Doubles Crypto Loan Issuance for the Third Quarter To $5.2 Billion

Crypto lender Genesis provided $5.2 billion in new loans in the third quarter of 2020, more than double its previous record of $2.2 billion in the preceding quarter.

Issued to corporate borrowers such as hedge funds and trading firms, the loans are mainly denominated in bitcoin (BTC), ether (ETH), bitcoin cash (BCH), and cash.

According to the U.S. company’s Q3 Digital Asset Report shared with news.Bitcoin.com on Oct. 30, Genesis grew its active loans outstanding 50% to $2.1 billion from $1.4 billion in the second quarter.

Altogether, Genesis has processed a total of $13.6 billion worth of crypto loans since it started its lending business in March 2018.

As a percentage of the total loan portofolio, bitcoin-based loans fell sharply in Q3, tanking to 40.8% from 51.2% previously. BCH loans almost remained stagnant at 4.3% while ETH borrowing nearly doubled to 12.4%.

“The main driver of this portfolio shift came from the impact of liquidity mining on decentralized finance (defi) protocols,” said Genesis.

“We saw defi interest rate arbitrage drive significant new issuance where our trading counterparties started actively borrowing ETH and stablecoins to lever up liquidity mining strategies. These counterparties, at the same time, borrowed the associated governance tokens such as UNI, YFI, COMP, and LEND to hedge their future in-kind earnings.”

The lender says it is seeing massive growth across all its business lines, including derivatives and spot trading.

In the review quarter, derivatives volume – both options and futures – soared 150% to $1 billion from $400 million previously. Genesis only started trading derivatives in Q2 2020. Spot volume rose about 15% quarter-on-quarter to $4.5 billion, it said.

What do you think about Genesis’ growing loan book? Share your thoughts in the comments below.

The post Genesis Doubles Crypto Loan Issuance for the Third Quarter to $5.2 Billion appeared first on Bitcoin News.

Filed Under: Bitcoin derivatives, crypto lending, decentralized finance, English, Fintech, genesis, Hedge Funds, News Bitcoin

Japan’s Messaging Giant Line Introduces Crypto Lending Services

07/10/2020 by Idelto Editor

Japan's Messaging Giant Line Introduces Crypto Lending Services

Back in the summer of 2018, the Japanese messaging giant, Line Corp., launched a cryptocurrency exchange with over 30 digital assets. Now Line is introducing crypto lending services with five different crypto assets and a new lineup of decentralized applications (dapps).

The Japanese messaging software company, Line Corp., is a firm that developed the freeware application called “Line” for instant communications on a myriad of electronic devices. According to statistics, Line has roughly 80 million registered users leveraging the messenger.

The Line app launched in 2011 is similar to China’s Wechat and the South Korean competitor Kakao. Two years ago, Line Corp. revealed it was launching a crypto exchange with 30+ trading pairs and “low trading fees.”

This past August, Line introduced the company’s Bitmax wallet, the Line blockchain, and distributed ledger development platform. Line’s crypto exchange operator dubbed “LVC” announced on October 6 that the firm will allow cryptocurrency lending with five different crypto assets.

Crypto lending services and yield-bearing assets have been all the rage in 2020, and the industry continues to see exponential growth.

Essentially the new lending service allows customers to lend BTC, BCH, LTC, XRP, and ETH to the firm’s Bitmax subsidiary. Line lenders will be able to obtain a yield off of the assets borrowed in the form of a rental fee, a regional report detailed on Wednesday.

A loose translation of the announcement notes that the crypto lending service will begin on Thursday, October 7, 2020. The interest on the loans will be incurred ever day and Line Corp. disclosed the lending requirements to the Tokyo Stock Exchange on Wednesday afternoon.

If the user wants to return the money within a single day it is possible, while the longest term seems to be set at seven days for now. “LVC will carry out a campaign from the 7th to the 30th of this month to raise the annual loan rate to 10%,” the local report noted.

In addition to the crypto lending announcement, Line also revealed a number of distributed apps based on the Line blockchain on the same day. With lending and a myriad of decentralized applications (dapps), Line seems extremely focused on joining the decentralized finance (defi) revolution.

The platforms announced represent an “inaugural list of third-party services that are/will be offered on Line blockchain.” Third-party services disclosed include a mobile RPG game developed by Biscuitlabs, which is the Japanese version of the tale “Knight Story.”

Line also mentioned projects like Linksign a digital contract service, a blockchain social media service called Afan, a blockchain-based MMO strategy game dubbed “League of Kingdoms,” “Cryptodozer” a coin pusher game, Somesing a social karaoke app, and Theta.tv a video streaming platform.

“Line will continue striving to provide blockchain services and technologies that can be integrated into users’ daily lives,” the company said on Wednesday.

What do you think about Line’s latest crypto lending announcement and new defi apps? Let us know what you think about this subject in the comments section below.

The post Japan’s Messaging Giant Line Introduces Crypto Lending Services appeared first on Bitcoin News.

Filed Under: Afan, BCH, Bitcoin, Bitcoin Cash, Bitmax, BTC, crypto lending, dApps, defi, English, ETH, Ethereum, Exchange, Instant Communications, Interest, Japan, Japan Line, Japanese Crypto Market, Line, Line Blockchain, line corp, Linksign, Litecoin, LTC, LVC, Messaging Service, News, News Bitcoin, Ripple, Somesing, Theta.tv, Wallet, XRP

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