Packy, what about the risk of fraud on the stable coins? How do you actually know that BlockFi has one USD in reserve for each stable coin they've created? Are they audited by someone reputable? Tether and Bitfinex are 100% a scam and banned in NY for that reason. Additionally, I'm not sure how big the bitcoin arbitrage trade is. CME bitcoin futures are cash settled and there is no physical delivery, which limits the trade - it is not a true arbitrage. Plus, I don't know of any reputable hedge funds or banks that trade crypto.
Packy - great article. Why risk my BTC principle just to get a 6% return? Sure they’ve had 0% loan loss, but they’ve only been doing this for a year (I think that’s right but could very well be wrong) - I would hope they would have a 0% loan loss. But no doubt they will lose principle in the future. Only difference is that a bank is insured and is regulated - we have no idea what exposure or how much leverage a company like Blockfi has outstanding.
I was convinced to invest here by a friend I met on Tinder, Her name was Annie ( now I know she could be anyone else). At first everything was going on well until I requested for withdrawal, that’s when the nightmare started… I had to put in more money before I could withdraw. Then came the unending taxes; I was fined and taxed for various reasons. There was always a reason why I couldn’t take out my money. I was tired of everything and began looking for help. Since all the payments I made were through cryptocurrencies, my local police could not help me. Luckily I finally got help from the authorities I contacted via email at zattrecoverypro1 @ gmail com. Wonderfully, after providing my details, it took them barely a week to trace and retrieve my funds. Get help from them if you are in a similar.
They promised a guaranteed return on my investment but after investing my life savings, I got nothing in return. They seemed legitimate at first, but it was all a scam. I urge people to stay away from fake platforms and not risk their hard-earned money like I did. Report scam to cybertecx net for payout solution
This was an interesting read after everything that has happened. Would be cool to see a post-mortem write up detailing how it went wrong and how the space is continuing to evolve.
Packy, Would you mind checking out Anchor protocol which offers 20% APY on stablecoins and this is backed by NAVAL, ARRINGTONXRP CAPITAL, GALAXY DIGITAL, and ARK Investments are also looking into this project might be a game changer
Packy are you familiar with the Voyager app? They seem to be doing something similar to BlockFi, offering interest on deposits. They don't have a credit card, and don't seem to be as ambitious long term, but I wondered if they are making their money in a similar way.
Great write-up Packy. As you say "time will tell" and the true test for the business model will be how they deal with a downturn (delinquencies, knock-on effects, etc.) and whether they can keep rates for depositors as high as they are. I've used the collateralised loan service too and been very impressed. First Pomp's recommendation, now Packy's. What more do we need! For loans, the one drawback is the lack of ability to see when the repayments you have made have actually been received by BlockFi, or not, but I hear they are working on building that functionality in. In the meantime, their support is good/rapid response plus they say they will notify you direct if any repayment is overdue plus they are "ok" with up to 5day delays (grace period) which is a much friendlier approach than Main Street banks.
Awesome article Packy! I would love to deposit into BlockFi, but unfortunately I live in NY, the only state to outlaw it. Nevertheless, I forwarded this article to my roommate who is from PA. He's depositing into BlockFi using your code, but wants to know how the $250 in free bitcoin works. Is it added to the account over time or through some other way?
Ahh Packy, great article!! Your articles have me anticipating the next one like a fast ball down the middle on a full count...LOL. I can see myself doing the same crazy thing at Octoberfest except I'd have maxed out the 3 credit cards and called Mom to wire more money. All the best, keep rocking it!
Love your articles! Especially how you articulate a startups true value prop. The only piece that was not clear to me within the BlockFi article was how they are able to pay 8.6% interest. A return for one party must be a cost of capital for another. Right? Is it baked into the transaction fees?
Packy, what about the risk of fraud on the stable coins? How do you actually know that BlockFi has one USD in reserve for each stable coin they've created? Are they audited by someone reputable? Tether and Bitfinex are 100% a scam and banned in NY for that reason. Additionally, I'm not sure how big the bitcoin arbitrage trade is. CME bitcoin futures are cash settled and there is no physical delivery, which limits the trade - it is not a true arbitrage. Plus, I don't know of any reputable hedge funds or banks that trade crypto.
Packy - great article. Why risk my BTC principle just to get a 6% return? Sure they’ve had 0% loan loss, but they’ve only been doing this for a year (I think that’s right but could very well be wrong) - I would hope they would have a 0% loan loss. But no doubt they will lose principle in the future. Only difference is that a bank is insured and is regulated - we have no idea what exposure or how much leverage a company like Blockfi has outstanding.
I was convinced to invest here by a friend I met on Tinder, Her name was Annie ( now I know she could be anyone else). At first everything was going on well until I requested for withdrawal, that’s when the nightmare started… I had to put in more money before I could withdraw. Then came the unending taxes; I was fined and taxed for various reasons. There was always a reason why I couldn’t take out my money. I was tired of everything and began looking for help. Since all the payments I made were through cryptocurrencies, my local police could not help me. Luckily I finally got help from the authorities I contacted via email at zattrecoverypro1 @ gmail com. Wonderfully, after providing my details, it took them barely a week to trace and retrieve my funds. Get help from them if you are in a similar.
They promised a guaranteed return on my investment but after investing my life savings, I got nothing in return. They seemed legitimate at first, but it was all a scam. I urge people to stay away from fake platforms and not risk their hard-earned money like I did. Report scam to cybertecx net for payout solution
This was an interesting read after everything that has happened. Would be cool to see a post-mortem write up detailing how it went wrong and how the space is continuing to evolve.
Is BlockFi still liquid? A follow up would be nice given their recent issue with misappropriated BTC rewards.
Packy, Would you mind checking out Anchor protocol which offers 20% APY on stablecoins and this is backed by NAVAL, ARRINGTONXRP CAPITAL, GALAXY DIGITAL, and ARK Investments are also looking into this project might be a game changer
Packy are you familiar with the Voyager app? They seem to be doing something similar to BlockFi, offering interest on deposits. They don't have a credit card, and don't seem to be as ambitious long term, but I wondered if they are making their money in a similar way.
Great write-up Packy. As you say "time will tell" and the true test for the business model will be how they deal with a downturn (delinquencies, knock-on effects, etc.) and whether they can keep rates for depositors as high as they are. I've used the collateralised loan service too and been very impressed. First Pomp's recommendation, now Packy's. What more do we need! For loans, the one drawback is the lack of ability to see when the repayments you have made have actually been received by BlockFi, or not, but I hear they are working on building that functionality in. In the meantime, their support is good/rapid response plus they say they will notify you direct if any repayment is overdue plus they are "ok" with up to 5day delays (grace period) which is a much friendlier approach than Main Street banks.
Awesome article Packy! I would love to deposit into BlockFi, but unfortunately I live in NY, the only state to outlaw it. Nevertheless, I forwarded this article to my roommate who is from PA. He's depositing into BlockFi using your code, but wants to know how the $250 in free bitcoin works. Is it added to the account over time or through some other way?
Ahh Packy, great article!! Your articles have me anticipating the next one like a fast ball down the middle on a full count...LOL. I can see myself doing the same crazy thing at Octoberfest except I'd have maxed out the 3 credit cards and called Mom to wire more money. All the best, keep rocking it!
Love your articles! Especially how you articulate a startups true value prop. The only piece that was not clear to me within the BlockFi article was how they are able to pay 8.6% interest. A return for one party must be a cost of capital for another. Right? Is it baked into the transaction fees?