The crypto declination has ensured complete chaos in the arena of cryptocurrency businesses. The volatility in the marketplace, has prompted well-reputed digital currency exchanges to halt their trading activities. If you want to get started with Bitcoin mining, visit https://bit-indexai.net.
Similarly, investors have been confronting ongoing financial losses. Investors’ explorations , the best platform for investing and trading, have brought no consolation. Then again, several digital currency platforms have begun to prevent users from accessing them. They can neither reach their hoardings, nor withdraw cryptocurrencies.
Therefore, Changpeng Zhao’s advice comes at the right time. He is the CEO of Binance. He suggests that investors stay away from certain cryptocurrency exchanges.
Three Arrows Capital
It has another name – 3AC. The title refers to cryptocurrency hedge funds. These funds had been at the top of the charts earlier. However, they are on the verge of bankruptcy, currently.
Surprisingly, even in March 2022, 3AC could boast of $10 billion in digital assets. However, two events have succeeded in destroying the establishment’s trustworthiness.
One is, fluctuations in pricing of digital currencies, thanks to the crypto winter. The second is the initiation of risky trading strategies. These strategies failed to take off, and wiped out the company’s assets. It is now unable to repay its lenders. Offering easy-flowing credit only served to worsen the effect of wrong-way bets.
BlockFi
It is amongst the largest digital currencies across the globe. Unfortunately, the crypto winter has affected it badly. The meltdown has even led to the downsizing of its employees by 20%.
In a recent report that it released to the public, BlockFi stated that its loan portfolio registered $1.8. This figure appeared towards the end of the second quarter. The collateral on display is at $1.2 billion. Thus, the exposure stands at $600 million. Exposure refers to the distinction between the principal (loan) amount and the posted collateral’s fair value. The collateral could be anything – digital assets, other assets, or cash.
The report also stated that the total amount handed over to retail borrowers, consisted of $300 million. In contrast, the total amount forwarded to institutional clients, stood at $1.5 billion.
Zipmex
This digital currency exchange caught the attention of the media, because it has brought users’ withdrawal of funds to a halt. The company explained that it was facing financial issues, and expected to confront more in future.
Now the cryptocurrency exchange has agreed to relent, albeit to a limited extent. Investors may remove some tokens, if they want. For instance, investors’ trading wallets would find SOL (Solana) tokens deposited in them, soon. Similarly, there would be crediting of ADA (Cardano) and XRP (Ripple), thereafter.
However, the company would not permit withdrawal of highly-reputed assets, such as Ethereum and Bitcoin. They would remain locked up.
Gemini
This cryptocurrency exchange functions under private ownership. Tyler and Cameron Winklevoss launched it in 2014. The exchange has 60+ digital currencies on its list.
The exchange is famous for its tiered services, each under the control of a distinct interface and fee structure. These interfaces and charges are different for hardcore traders and casual investors.
Gemini also offers its native currency, a mobile app, and a payment app. The native currency is the Gemini dollar. It is linked to the U.S. dollar as a Stablecoin.
However, ongoing financial problems have forced the company to downsize 10% of its employees. The company plans to review its existing products, and reevaluate their individual contributions to the establishment’s future growth.
Celsius
It was amongst the initial group of cryptocurrency exchanges to let its users access the company’s cash reserves. Celsius is facing a terrible financial issue, wherein it owes over U.S. $4 billion. Hence, it has filed for bankruptcy.
When Celsius entered the crypto arena, it operated as a traditional bank would. Its intelligent operations demonstrated it to be a highly successful decentralized finance platform.
The evidence was there in a public announcement, a couple of months ago. Celsius had 1.7 million users on its subscription list. Its assets were worth $11.7, and well managed. The loans amounted to $8 billion. Furthermore, the annual percentage yields on deposits of digital currencies, had gone up to 17%.
Unfortunately, everything came crashing down in July 2022! Celsius possesses a mere $167 million in ready cash, to restructure itself.