Crypto Lenders in TROUBLE? Your COINS AT RISK?!
You know you know off the deep end when it comes to cryptocurrency thing, but what were going to focus on here is using apps you just download on your phone. You put your money in there. You put your dirty dollars. You put your bitty bitcoins in there. Whatever else and – and you earn money you earn interest in particular, lets focus on block five and yes well also talk about celsius in this video who, just to be blunt, theyre not doing too well. My name is vazquez on the voscoin youtube channel. We focus on earning money through cryptocurrency, as crypto can truly give you life changing gains and just allow you to change your life and potentially truly achieve financial freedom. Our clo, our chief lending officer, yes, is the cutest puppy youve ever heard of. Let me know that i had to say this: this aint financial advice, okay, also in full transparency. Block fi is an annual sponsor of the boss coin youtube channel and we are going to kind of fixate on them, but i assure you that im going to keep it real. I dont care about the sponsorship. I have more money than that sponsorship is concerned, tied up in my actual blockfi account. So i take this very seriously. Theres been a lot of negative press about these cfi centralized finance lenders recently, but its not even just celsius anymore, voyager just crumbled among several others and now theres. Even a new statement from blockfi basically saying that their valuation is down huge theyre teaming up with ftx to get a big line of credit, and then on top of that, that ftx is pretty much on track just to buy them.
So you may be thinking its time to move all of your coins into cold storage and to self custody. Your funds thats definitely not a bad idea. However, someone is likely to come out of this just demolition. I mean we need a little bit more of a dramatic word today, a victor or survivor, and they will really have cornered the market and persevered through the toughest market conditions for c5 centralized finance lenders to date. The demand is absolutely there. However, a lot of these lenders celsius, namely engaged in very risky lending and thats, why theyre missing a whopping 2 billion dollars, but about a year ago everybody was raving about them and it wasnt just for you know, use my affiliate link dog and get up 250 Bucks for free its also because well, you just simply earn interest right, so ive got bitcoin sitting. Cold storage earns a whole lot of nothing or i could put it in this app get a free, signup bonus, which is literally free money and free coin. At this point you get paid out in bitcoin. In that bonus also, you can earn interest on other cryptocurrencies as well as stable coins. So lets just say: youve got a little usd savings account. Why would you sit in your capital, one account and earn a quarter of a percent when you could just have it sit there and, depending on the market conditions and rates, be earning six percent, seven percent eight percent? Ten percent.
Right i mean the rates have fluctuated and thats, not really the point. The the takeaway is that its massively higher and its really the closest thing that you can get to a safe bet as a hedge against inflation other than investing in assets, for example like bitcoin. That have a fixed supply, 21 million and people keep pushing that use case forward and trying to drive more adoption, which leads to a higher price point. Orange coin number go up as the btc maximalists say, but my point is that a year ago we were all raving about it, and now a lot of people are worried. Ive been concerned too. What do you mean that you know this person was liquidated and these funds and then and then you know well really kick this off but well talk about. It is celsius right, so ill see its like. Hey were paused withdrawals. We dont have liquidity, basically celsius, mismanaged their funds heavily to the point that they and im sure that they tried to do a hundred things before this. They had to announce publicly that hey yeah, you didnt, lose your money and then good old trayvon james from a couple market cycles ago now comes in hes. Like listen up. You didnt lose your money. Now you you have your technically. You kind of lost your money. Yeah, you lost your money. The short summary of it is that celsius is a d gen with your money.
They give you higher than some competitor interest rates, but they risk it and theyve had exposure to things that have gone very bad, for example, losing a ton of money with tara, luna and also some other uh investments. Basically, just blowing up or being hacked right and you compare that with block fi block. Five got some negative press recently as well, but the ceo hits twitter and hes like table battle, tested, everythings fine, then sbf whos, one of the richest men in the world and the main man at ftx steps up and hes like yeah, were gon na, be injecting A quarter billion into block fight and the black boss, like yo, we got a quarter billion, other people run press and, like hey, you may have seen like on the block. Black fight gets a 250 million dollar bailout and look ive been talking about a lot of negatives. But i wanted to really preface this with the recent drama news and everything like that and then talk about why my money is still in black fight and i can see it now, youre an idiot, oh its, not worth it. I mean look in my opinion. All of these are actually good signs for their actual users, so lets say: theyre down a quarter billion. Well, guess what they just went up a quarter billion, but lets be very clear on one thing: this could absolutely blow up in my face and be the worst financial mistake of my lifetime.
I am hedging my risk by removing some of my coins, but not all of them, at least for now, for zach in a recent podcast. He lays out that they are actually more profitable now, given these market conditions and thats, why their interest rates instead of going down based on all this fun and just simply bad news and potentially bad results. With a lot of withdrawals, people scared pulling their coins out their money out. They actually are raising their interest rates across the board and even significantly on some cryptocurrencies, like bitcoin, is up from point one percent to now two percent returns, which can be pretty significant if youre a btc whale. Two months ago, the institutional crypto lending market was a borrowers market. Today, the institutional crypto lending market is a lenders market. What does that mean? Um? It means that liquidity has been pulled out of the ecosystem. It means that theres, in a lot of cases, more demand from institutions to borrow because of the heightened levels of volatility that were experiencing, but theres less supply available to them and so its more of a lenders market than a borrowers market. Today, and one of the outputs of that is that lenders like blockfire, are able to charge higher rates when were lending to you know the borrowers that were lending to and that flows through to our clients in our in our you know, products where they earn interest. Um on their crypto or stable coins – and so i dont know if this will be before or after the pod comes out, but were announcing today our rates that go into effect on july 1.
. We change our rates. We update our rates once a month. Um and rates are going up across the board, and i understand you can throw hate at this and shade and whatever, but at the end of the day, for me just looking at it as a simpleton right im like yo thats great you, big players are throwing Around your big money making moves somebodys, making money, someones house is surviving right and then me im an interest on my crypto currencies and i didnt lose my money thats pretty much. All i could ever want and ask for block fi is heavily regulated, theyre being investigated. Recently, fined by the sec, the securities exchange commission here in the united states, basically theyre a bunch of losers, who like to find people that help people like you and me, make money theres a little bit more to it than that. But the takeaway here is that blackfy is the first lender to face heavy scrutiny from the us government theyre, either going to shut their doors or theyre going to emerge victorious and be the absolute leader and trendsetter for that in the space. The fact that they just took a quarter billion injection instead of going belly up and its game over is a pretty good sign in bullish. If you kind of read between lines, at least for me personally, the way im interpreting it again and no, i want to just say for the fifth time its whatever it is its im not here to push this on.
You im not here to shill it. Okay, i already gave you the full disclaimer and yeah like we got ta. Let we got a link with block five or you just go block five dot com, slash, boss, quinn. I get it right and its an easy way to write off what im saying, but i tell you truly honestly, as a user of block fi with the majority of my net worth in that platform. Okay, this is the reasoning why i continue to use it. I dont care about a youtube channel sponsorship to the degree that i would risk a lot of what ive worked for up to this point. Um. No, no! I dont, i dont ill blow anything ive blown tons of sponsorships on the channel for keeping it real thats. Actually, the number one reason why voscoin loses our long term sponsors, annual sponsors and whatever else for a crypto youtube channel, because i keep it real and i tell the truth. I dont sugarcoat, i dont lie and i talk about the things that need to be talked about and uh news flash a lot of people dont like that. A lot of people just dont, even like honest criticism, something come to mind first, would be zentrash as well as divvy and krypto.com, but i assure you that the list is much longer than were going to talk about in this video and thats just another another day. Another topic – i guess really my i dont – want to like just kind of talk in circles here in all seriousness, you look at the situation.
You look at the market conditions. You look at the numbers, you look at the investments, you look at the buyout bailout. You know, however, you want to frame it. In my opinion, this puts at a minimum block fight at a healthy position. Lets say they werent. Well, they did what they needed to do and struck the deal as they needed to do to keep pushing forward, which apparently they are per the recent blog post, that they say that they have not even drawn on this credit line yet and per the podcast. Last month was a good month for them. Somehow, even given the scenario that 3ac, which youre going to see that one a lot, basically, three arrow capital blew up and it is just wreaking havoc across the crypto ecosystem, especially from all these lenders, which is most notably. The reason why celsius as well as voyager, have already gone belly up and some are fighting to hang on blockfi – was also exposed to that revealed in the blog post, with the fully realized loss of about 80 million, which they claim is pretty good. Given the scenario and they kind of minimize the damage and that they absorb the loss from their own funds, not obviously spending their clients deposits at the end of the day, im looking for the best ways to increase my own money, my own investments, i want to Increase my bitcoin holdings. I want to have more dollars, i want to you know just you know, earn interest, i want to earn yield and its not all about money and stuff like that.
We talk about a ton of stuff here on the channel, but you know the the key metric is like yeah. I could sit in cold storage with my stuff, but then everyone else is going to just kind of casually pass me by and uh again. You know you do your own research. You come to your own conclusions: im, not faulting anybody sitting in cold storage, thats, the thats, the safest, bet right. You know whether youre sitting on a treasure model t or a ledger, or you even just you know – have a paper wallet thats totally fine. You can also use d5 protocols, decentralized, finance lending things like you could lend your coins out on ave too, its more technical, its more involved and dont think just because its a dap, its some kind of impenetrable fortress okay, there have been countless hacks and exploits, and When that happens, theres no bailout unless they have been accruing, you know some kind of pay or user back fund, whereas when it comes to a centralized company, a c5 company centralized finance like, for example, block fi if they dont bail out their users on lost funds Or you know reimburse them whatever you know they end up with lawsuits. They end up in court. They end up just as a defunct business, thats, basically doomed to be bankrupt, and it does go a little bit against the crypto ethos, because we want to be decentralized. We want to like have it so that no one can call bitcoins customer support number, but at the end of the day the average user does want that and thats that niche, that you know, block fi and their lending competitors fails um.
This is honestly just what i think, how i feel and how ive just interpreted all of my personal research in, and i assure you this is what im doing im, not paid to say anything do whatever i want and this this is what i continue to do, And i personally believe itll pay off in the long run just like, i believe i think it or hope itll pay off for you to subscribe to the boss coin. Youtube channel hit the thumbs up, leave a comment. I truly want to hear your thoughts and feedback on this one and uh. Let me know what you want us to cover next year on the channel.