Lately, we've all seen the headlines of Celsius, Voyager, and 3 Arrows Capital declaring bankruptcy. All of this happened because of the collapse of the Terra blockchain. I feel bad for everyone affected by these tragedies, but the question still remains. Who's next?
Nexo is a likely candidate for the next major bankruptcy in my books mainly because they are similar to both Voyager and Celsius because they loan out crypto and give out high interests on crypto tokens being held on the platform. They also have a token for governance purposes on the platform. Nexo seems like a risky place to park your crypto after the failures of both Celsius and Voyager.
Blockfi is another crypto bank that offers high interest yields on crypto tokens held on the platform. It has recently been slapped with a $100 million dollar fine by the SEC. However it was helped out by Sam Bankman Freed of FTX fame. Blockfi doesn't have a token of it's own like Nexo, Celsius, or voyager. However it offers crypto backed loans and that as of right now doesn't seem to be good. Being a centralized crypto bank doesn't seem like a good idea right about now.
Coinbase is also on my list for potential collapse. This behemoth of a crypto exchange invested into Terra Labs like so many others, and they lost a bunch of money because of it. They recently got rid of their Coinbase Pro site and built "Advanced Trading" on their main website. Coinbase also built an NFT marketplace on their website which has seemed to fail pretty spectacularly having a sales volume of only $1.8 million whereas Gamestops new NFT marketplace has surpassed $4 million in volume in three days. They also plan to "temporarily suspend" their affiliate program on July 19th. Meaning that they are on the defensive.
What do you think the next Cefi company will go under during this crypto winter? Tell me in the comments.
