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BlockFi to lay off 20% of employees, the latest crypto company scaling back headcount


hegemony
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4 hours ago, RehabbingANDBlabbing said:

The BlockFi Visa may be done sooner than we thought. Who wants to earn rewards that are going down in value?

I think the credit card might move to Coinbase card maintenance management since Coinbase only has a debit card portfolio and hasn't built any credit card business yet. 

 

If BlockFi does go down as Blispay has suffered recently. BlockFi Visa has plenty of options to continue adapting to new institutional ascendancy and plenty of fintech crypto neobanks that don't mind acquiring it.

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  • 4 months later...

I wonder which exchange is next to go belly-up? Will the Crypto.com Arena in downtown L.A. need to be renamed? I have to say I invested $400 in CRO many months ago to get their ruby-rose metal debit card. My CRO is down. At least I wasn't *Admin prohibits insults that reference an individual's intelligence.* enough, or rich enough, to get their $400,000 Obsidian card.

I have less trust in them. My account is worth about $1,150 with $850 of that on the debit card, which is at their participating bank/FDIC insured, so my exposure is real small. 

 

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5 hours ago, RehabbingANDBlabbing said:

Not sure if y’all saw this, but BlockFi has halted credit card purchases on their Crypto/Bitcoin credit card as well.

 

The news keeps getting crazier with FTX. $600 million more vanishing, their site getting hacked, backdoors to drain money without others knowing, etc., and it's a holiday weekend. I wonder what next week will bring. We're in for more surprises. 

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On 11/11/2022 at 2:35 PM, Burgerwars said:

I wonder which exchange is next to go belly-up? Will the Crypto.com Arena in downtown L.A. need to be renamed? I have to say I invested $400 in CRO many months ago to get their ruby-rose metal debit card. My CRO is down. At least I wasn't *Admin prohibits insults that reference an individual's intelligence.* enough, or rich enough, to get their $400,000 Obsidian card.

I have less trust in them. My account is worth about $1,150 with $850 of that on the debit card, which is at their participating bank/FDIC insured, so my exposure is real small. 

 

There is at least one FTX naming rights deal that has been severed with the Miami Heat looking elsewhere.  And I am guessing MLB umpires won't have the patch next year LOL!

 

What I find interesting is the claim that SBF took out something like $10B from FTX and that Alameda cannot account for a billion or two...and that these funds were allegedly indicated in customer agreements to belong to the customer and would not be used by the firm for trading.  Given his campaign contributions, it is curious whether anyone cares enough to look who got a boost with dirty funds.

 

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Quote

At this time, withdrawals from BlockFi continue to be paused. We also continue to ask clients not to submit any deposits to BlockFi Wallet or Interest Accounts.

Regarding our credit card product, BlockFi relies on partners to deliver the credit card product and distribute rewards. Customers may have received communication that didn't originate from BlockFi, but from our partners, Evolve Bank and Deserve. We are working with our partners and intend to directly provide further details on our credit card program as and when appropriate.

What’s next?

There are a number of scenarios that may be available to us, and we are doing the work now to determine the best path forward. BlockFi has the necessary liquidity to explore all options and we have engaged expert outside advisors that are helping us navigate BlockFi’s next steps. Haynes and Boone continues to serve as our primary outside counsel, and BRG has been engaged as our financial advisor.

As we work expeditiously through this quickly evolving situation, we are focused on doing the utmost to be transparent around decisions related to our pause, products, and platform activity.

Across BlockFi, our team is working tirelessly towards our primary objective of maximizing value for all of our clients, and that will see us explore every strategic option available to us.

We will do our best to communicate through our official channels as often and transparently as possible going forward but expect these explorations may take time. We appreciate your patience during this period.

The BlockFi Team

 

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No one seems to know how much money FTX owes BlockFi. It might be billions. Since FTX is in bankruptcy, BlockFi will be in line with every other creditor to get what crumbs are left. This sounds like when Three Arrows Capital declared bankruptcy, leaving Voyager Digital wondering of they'll collect any of the $650 million they loaned them (they're also in bankruptcy). I'm losing count of these crypto bankruptcies. If someone wrote this as a script for a movie before this happened, no one would have believed such a plot could even remotely happen. 

Edited by Burgerwars
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I know nothing about how the crypto community of firms are capitalized, but in my gut I'm wondering if they may, to some lesser or greater extent, be structured in a domino configuration. 

 

I have suspicions that cross-firm investments may have been rampant, or that a significant portion of the total investment in the participating player's capital may be heavily concentrated within a fairly limited set of investors (with a consequence that once such investors start taking a hit on the fallout from one "player", suddenly available capital becomes frozen and a liquidity squeeze ensues that threatens to topple the other players (especially if a large exodus of crypto holders occurs).

 

Pure speculation ... but one way or another I look for a tragic ripple from the events to date.

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Best site chronacling the various issues crypto exchanges are having. It's Molly White's accumulation of news stories and links since the start of the year. Views the whole web3 thing as VC driven marketting hype. Say the word blockchain and they throw money at you.

 

Web3 is Going Just Great (web3isgoinggreat.com)

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