BlockFi became the latest platform to succumb to the cryptocurrency epidemic, filing for Chapter 11 bankruptcy on November 28.
A few weeks before FTX filed for bankruptcy, block phi It issued a statement saying it could not operate as usual. At the same time, the company implemented a suspension of withdrawals to “protect customers and their interests.”
Amid the recent spate of bankruptcies, the crypto community has become more cautious about which platform will die next. Recent social media buzz centers around Binance, KuCoin, and Nexo.
After FTX, CELSIUS and VOYAGER, BLOCKFI just filed for bankruptcy.
Who do you think will go bankrupt next?
— Gurgavin (@gurgavin) November 28, 2022
Crypto exchange on launch line
Bitcoin Magazine Analyst On Binance Dylan LeClair Based on his recent behavior, he said he’s “getting weird vibes from CZ.”
LeClaire further speculates that the Binance-led crypto bailout fund is a public display of strength, suggesting weakness when applied to a quote from Sun Tzu’s Art of War.
“When you’re strong, you look weak, and when you’re weak, you look strong.”
However, analysts softened those comments by stating: say it to him “Quantitative Evidence of Fraud,Also, in making these comments, he is not making any allegations. Still he is skeptical.
Anyone else getting weird vibes from CZ right now? It looks like he’s running his SBF summer playbook.
Public forecasts of strength and talk of ‘industry bailouts’ while trying to raise funding.
I’m not claiming anything, but the similarities are…weird.
— Dylan LeClair 🟠 (@DylanLeClair_) November 28, 2022
In a recent interview with Swan Bitcoin CEO and Rebel Capitalist George Gammon, he commented on the Crypto Relief Fund. Cory ClipstenAlarm bells sounded to Celsius before his demise said:
“He could go completely insolvent, or he could all collapse. That’s very likely. But there’s another reason to do it. If you’re going to make 5 billion, that’s what you’re doing.
When pressed for his thoughts on Binance’s position, Clipsten said the company didn’t seem weighed down by risky directional bets. He said he seemed content to make money on the “rake.”
“They don’t seem to be making big directional bets, they are operating more transparently in the crypto world, assigning everyone a rating above zero as long as transparency is very difficult. .”
KuCoin dismisses bankruptcy talk
Similarly, the founder of Crypto Capital Venture Dan Gambardero pointed out that KuCoin is offering “ridiculous APRs” and that locked Bitcoins are paying almost 300% interest.
Can anyone tell me why Kucoin has a ridiculous APR now? Over 200%!
With all the recent cryptocurrency liquidity issues, is this really the best time for this?$BTC 299.49%$ETH 231.89%$USDT 200.25% pic.twitter.com/ldJylt9KTx
— Dan Gambardero (@cryptorecruitr) November 29, 2022
In general, high-yield commodities are a red flag as sustainability is questionable, and such strategies have been used in the past to attract the last wave of liquidity just for developers to hang around. .
KuCoin replied that the high APR was related to the “dual investment” product and not the main profitable product. What is double investment?Non-principal protection financial products with variable returns. As such, the amount earned will depend on the performance of the staked asset at maturity.
hello! Have you checked this article yet? It’s about KuCoin Dual Investment products that work on:
1. Why dual investment is a financial product without principal guarantee
2. Why are the APR spans of dual investment products so diverse?https://t.co/hJDP71uf3B— KuCoin Updates (@KuCoinUpdates) November 29, 2022
In a recent interview with CryptoSlate, KuCoin CEO Johnny Lyu denied bankruptcy rumors, stating that the company is “fully liquid” and is working to prove its reserves.
“We can confirm that we are fully liquid and we are now publicly disclosing the status of our assets.
Nexo says zero exposure to contagion
On November 16th, an API error halted the daily audit proof that Nexo’s assets exceeded its liabilities. The problem was resolved within hours.
However, the incident was flooded on social media with messages warning that Nexo was insolvent.
With the cryptocurrency community still on high alert, Nexo tweet thread on November 28th to address lingering rumors. In this thread, we have detailed our sustainable business model, our objective liquidation policy, and our careful management of Nexo tokens.
Additionally, Nexo says there is zero risk of bankruptcy or contagion to “struggling” entities.
Our risk management ensured zero risk of:
– FTX/Alameda;
– Genesis, Gemini, Luno, Blockphi;
– UST/Luna, Three Arrows Capital;
– Celsius, Babel, Hodornaught;
– A struggling crypto miner. 27/33https://t.co/MJtwTsouhe— Nexo (@Nexo) November 28, 2022
