Accelerate the GFC | Finance times

We have experienced a loss of billion dollars, a violent sale of the market, missed margins and unresolved liquidity problems on the cryptoma markets.

At this pace we should soon see mergers.

So that we do not forget it, the financial crisis in 2008/09 led to a wave of consolidation in the US banking. While crypto loan is not in a similarly central place in the global economy, this is largely only meant that their matchmaking is carried out informally by influential actors, not by central bankers or the US Ministry of finance.

The crypto rental and trading platform Blockfi may have just taken a step towards the fusion. When the New York Post was reported last week, the mess of the Kryptomarkt Blockfi sent in search of an equity infusion - and said it was reportedly difficult to obtain cash even with a high deduction.

Blockfi was pushed into a less friendly corner of the capital markets that opens institutions when the goal is survival and not the journey to the moon: loans. Blockfi lent 250 million dollars in a revolving credit facility of FTX, a competitor who is managed by the well-known effective altruist and casual Tech Exec stereotype Sam Bankman-Fried.

Today @Blockfi Signed a term sheet with @ftx_official to secure a revolving loan facility in the amount of $ 250 million, which gives us access to capital The balance sheet and platform strength further strengthens.

-Zac Prince (@Blockfizac) 21. June 2022

The interest rate and the conditions were not announced in the press release. Prince of Blockfi talks about "future collaboration and innovation between Blockfi and FTX" and assures the customer that the credit line will not be entitled to customer funds. (We would hope that this was a matter of course, because this seems to be an attempt to form the trust, but at Krypto it is never quite clear.) Bankman-Fried focuses on Blockfi's "strong focus on prudent risk management" and not in more detailed future partnerships.

But we've seen this film before. You can argue about how directly the two compete, but both offer trade, articles and loans for individual crypto dealers and wider services for institutions.

The talk about partnership and cooperation can only be a sign that this credit line is set up in such a way that it finally becomes a majority stake.