Devaluation Fundraisers are not the same in the cryptosphere. BlockFi Cryptocurrency Lending Platform This can be attested by the funding round that was conducted in a bearish background.
BlockFi Fundraising: Another Victim of Crypto Winter
BlockFi will soon close a certain funding round that qualifies as round bottomAs a result of the low valuation of the company.
This round table will actually bring this evaluation to 1 billion dollars. But that number rose to $3 billion after it raised $350 million in March 2021.
How do we explain this large decline? The company published during the fundraising campaign for the month of March of last year Figures reflect its strong growth. Then she had a $10 billion loan book. The platform also boasted of its 265,000 hash accounts.
But BlockFi must now We will have difficulty in 2022. The crypto winter started months ago. It affects the financial performance of companies in the sector.
Even bear markets have forced major crypto exchanges to freeze hiring and layoffs.
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Cryptocurrency lending platforms and regulation fluctuations
Cryptocurrency lending and savings platforms also have to deal with another major issue: the problemRegulatory uncertainty that could penalize their activities.
These could be organizational errors or loopholes expensive companies in the sector. For example, BlockFi had to pay a fine of $100 million to the Securities and Exchange Commission. These payments were intended to end the fight with the regulator.
The commission put pressure on Blockfi, and opened an investigation into its savings products. The SEC wanted to determine whether or not these had the characteristics of offering unregistered securities.
But despite this huge bill and bearish context, the company is still going Speak firmly with optimism.
In its statements to the media The Block, the company said that it wants to offer another product similar to its paid savings. However it will launch such a show After obtaining regulatory approvals wanted.
Therefore, BlockFi’s assessment follows the downward movement of cryptocurrency prices in 2022. The crypto winter will not last forever. The good days will return with an impressive recovery for Bitcoin. But in the meantime, companies in the sector must show flexibility.
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