BlockFi CEO Zac Prince is addressing claims surrounding the DeFi protocol.
What Occurred: In a blockchain letter named “DeFi Labored Nice,” Pantera Capital deemed BlockFi to be an unsuccessful instance of CeFi, whereas praising the work achieved by different protocols. Pantera Capital’s letter grouped BlockFi with different corporations experiencing liquidity crises and different structural issues, resembling Voyager VGX/USD and Celsius CEL/USD.
Prince responded on July 13 by deeming these claims to be baseless and deceptive. He additional went on to make clear that BlockFi doesn’t use depositor funds for its DeFi actions, in contrast to different failing crypto corporations.
His tweet stated, “Placing @BlockFi alongside Celsius and Lehman Brothers in the identical sentence is deceptive. They have been/are bankrupt or bancrupt – we’re not.” Prince additionally clarified that BlockFi, opposite to Pantera Capital’s feedback, will not be set to break down, stating that the agency is “working ALL of our merchandise identical to we have been a month in the past (loans, buying and selling, interest-earning, and bank card).”
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In his recent interview with CNBC, Prince commented on the crypto lending agency FTX’s FTT/USD bailout to BlockFi, deeming it to help the agency’s stability sheets. In an announcement launched by BlockFi, the agency reversed its place on not accepting GBTC shares as mortgage collateral.
As acknowledged by a BlockFi spokesperson, “We’re not saying that we can’t help GBTC as collateral transferring ahead. Like several collateral, we always consider applicable collateral haircut ratios and intention to just accept as many sorts of collateral that our shoppers maintain as potential.”
