BlockFi Bites the Dust? Another Crypto Exchange Files for Bankruptcy
Womp. Joining the likes of FTX, BlockFi has reportedly filed for bankruptcy. I wrote that this was a possibility a few weeks ago here, and now it’s confirmed.
BREAKING: BlockFi is filing for immediate bankruptcy, per Decrypt.
— unusual_whales (@unusual_whales) November 28, 2022
BlockFi Files for Bankruptcy
What does this mean for crypto?
Well by now it should be clear that all coins should be removed from exchanges. As a result of another bankruptcy filing, crypto winter is going to push on.
How long will crypto winter last? No one can say for sure. I made a prediction article here.
This BlockFi news is sure to impact Coinbase negatively in the short term. If you’ve been following the blog, you’ll know that I believe Coinbase will succeed.
It’s certainly a contrarian opinion at this point, but one I could see being strengthened by other exchanges collapsing. Coinbase is positioned to be seen as “the only safe exchange.”
Which I must admit, is a slight contradiction.
With that said, if you have any funds on BlockFi, take them off.
BlockFi was never seen as a “major player” in the crypto game. However, they do have a Bitcoin credit card where you earn 1.5% back in crypto on all purchases.
What Does this Mean for Crypto?
I believe crypto winter will carry on. I predict the first and second quarter of 2023 will be volatile.
However, we know that things can change quickly. The crypto markets could shift from bear to bull markets in a matter of minutes.
This is bad news in the short terms. BlockFi has been trying to cover up their traps for the past few weeks.
BREAKING: #BlockFi has disabled user postings on Reddit community. Appears to be deleting old posts.
— Mr. Whale 🐳 whalechart.org (@WhaleChart) November 28, 2022
This shadiness, along with the FTX fallout, will make retail investor’s skeptical of crypto in general.
There will have to be months of good sentiment toward computer coins for anything to improve.
BlockFi just deleted their team page. I leave it here, so you know where your precious #Bitcoin are.
REMEMBER: Not your keys, not your coins. pic.twitter.com/BFJbV2UD3W
— Carl ₿ MENGER ⚡️ (@CarlBMenger) November 17, 2022
Will Brian Armstrong and Coinbase save the day?
I believe they can and will. However, I think a more likely short-term scenario involves Elon Musk.
Elon Musk could find a way to integrate Crypto into Twitter in 2023. This would bring the masses back in droves.
Until then, it’s best to get your coins off exchanges and ride things out from the sidelines.
So, what do you make of this situation? Comment below.
