Blockfi agrees to pay $100M in penalties and pursue registration

Re:Blockfi agrees to pay $100M in penalties and pursue regis... by thebean11 on Monday February 14, 2022 @06:09PM (#30339733)

It's unlikely that every single borrower would default just like it's unlikely every stock in an index fund would go to zero. I wouldn't really compare it to options trading, junk bonds are a much better comparison. Lower potential return but also much less likely you would lose money than with options.

Obviously the devil is in the details, it's not clear if/how these loans are secured.

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Re:Blockfi agrees to pay $100M in penalties and pursue regis... by CPLX on Monday February 14, 2022 @06:33PM (#30340082)

There’s no reason at all to think that a complete and total default is unlikely.

It’s far from certain but it’s certainly plausible that the value of nearly all cryptocurrency’s will collapse to nothing at all.

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Re:Blockfi agrees to pay $100M in penalties and pursue regis... by Animats on Tuesday February 15, 2022 @03:22PM (#30352115)

The more likely failure mode is that you've lent to something that's leveraged. That can go to zero on a partial drop of the underlying asset. Which is what happened in 2008.

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