4 ms·

It's official now; let's see if any other crypto companies will also fall. Looking at BlockFi and Nexo specifically.

throwup 4y ago
Weed out the weak. https://finance.yahoo.com/news/blockfi-halts-withdrawals-cites-lack-022759306.html https://finance.yahoo.com/news/blockfi-halts-withdrawals-cit...
- smt88 4y ago
  That's all of them, at this point (at least the big ones).
  - wollsmoth 4y ago
    coinbase is still out there.
  - trizuz 4y ago
WFHRenaissance 4y ago
Nexo has zero exposure to FTX according to their CEO.
- bombcar 4y ago
  Hopefully this CEO will finally be the one who is totally honest and above-board.
- hn_throwaway_99 4y ago
  Nexo just proved that when there is a run on the bank, you want to be first in line: https://cointelegraph.com/news/nexo-dodges-219m-bullet-just-days-before-ftx-s-solvency-crisis https://cointelegraph.com/news/nexo-dodges-219m-bullet-just-...
  - aeternum 4y ago
    It's also quite possible they caused it. Fractional reserve banking by definition means keeping only a percentage of customer deposits readily available. Regulation also doesn't fully solve this, we still have fully regulated bank failures today: https://en.wikipedia.org/wiki/List_of_bank_failures_in_the_United_States_(2008%E2%80%93present)#2022 https://en.wikipedia.org/wiki/List_of_bank_failures_in_the_U... What solves it is the Fed stepping in and agreeing to print money no matter what to cover customer deposits if need be (FDIC insurance). That's hard to replicate in the crypto world but likely possible.
    - dragonwriter 4y ago
      > What solves it is the Fed stepping in and agreeing to print money no matter what to cover customer deposits if need be (FDIC insurance). The FDIC is not related to the Fed, and certainly does not entail a commitment of mobetary policy (it involves a fiscal commitment by the USG, but the whole point of the Fed is to separate monetary policy from fiscal actions.)
- rippercushions 4y ago
  That's what BlockFi said yesterday, and here's what they're saying today: https://blockworks.co/news/blockfi-stops-withdrawals-hinting-ftx-mess-can-only-get-worse/ https://blockworks.co/news/blockfi-stops-withdrawals-hinting...
  - aniforprez 4y ago
    It's still possible they had no direct exposure because all of crypto is in chaos right now and people are fleeing
- jahewson 4y ago
  That’s good. Of course indirectly they’re exposed to the macro environment that FTX just dropped on everybody.
bmitc 4y ago
I saw that BlockFi is already blocking withdrawals and asking customers not to deposit.

Weed out the weak. https://finance.yahoo.com/news/blockfi-halts-withdrawals-cites-lack-022759306.html https://finance.yahoo.com/news/blockfi-halts-withdrawals-cit...

smt88 4y ago
That's all of them, at this point (at least the big ones).
- wollsmoth 4y ago
  coinbase is still out there.
- trizuz 4y ago

WFHRenaissance 4y ago

Nexo has zero exposure to FTX according to their CEO.

bombcar 4y ago
Hopefully this CEO will finally be the one who is totally honest and above-board.
hn_throwaway_99 4y ago
Nexo just proved that when there is a run on the bank, you want to be first in line: https://cointelegraph.com/news/nexo-dodges-219m-bullet-just-days-before-ftx-s-solvency-crisis https://cointelegraph.com/news/nexo-dodges-219m-bullet-just-...
- aeternum 4y ago
  It's also quite possible they caused it. Fractional reserve banking by definition means keeping only a percentage of customer deposits readily available. Regulation also doesn't fully solve this, we still have fully regulated bank failures today: https://en.wikipedia.org/wiki/List_of_bank_failures_in_the_United_States_(2008%E2%80%93present)#2022 https://en.wikipedia.org/wiki/List_of_bank_failures_in_the_U... What solves it is the Fed stepping in and agreeing to print money no matter what to cover customer deposits if need be (FDIC insurance). That's hard to replicate in the crypto world but likely possible.
  - dragonwriter 4y ago
    > What solves it is the Fed stepping in and agreeing to print money no matter what to cover customer deposits if need be (FDIC insurance). The FDIC is not related to the Fed, and certainly does not entail a commitment of mobetary policy (it involves a fiscal commitment by the USG, but the whole point of the Fed is to separate monetary policy from fiscal actions.)
rippercushions 4y ago
That's what BlockFi said yesterday, and here's what they're saying today: https://blockworks.co/news/blockfi-stops-withdrawals-hinting-ftx-mess-can-only-get-worse/ https://blockworks.co/news/blockfi-stops-withdrawals-hinting...
- aniforprez 4y ago
  It's still possible they had no direct exposure because all of crypto is in chaos right now and people are fleeing
jahewson 4y ago
That’s good. Of course indirectly they’re exposed to the macro environment that FTX just dropped on everybody.

bmitc 4y ago

I saw that BlockFi is already blocking withdrawals and asking customers not to deposit.