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Grayscale Bitcoin Trust

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<ul class="news-points">
 <li>BlockFi’s bankruptcy arose from risky lending and speculative investments. </li>
 <li>Entanglement with major funds worsened its financial state.</li>
 <li>CEO Zack Prince’s shift to real estate reflects uncertainty about BlockFi’s future.</li>
</ul>
Crypto Expert Louis recently revealed more insights regarding BlockFi’s bankruptcy saga. Established in 2017 by Zack Prince, the company embarked on a venture to lend out cryptocurrency. However, BlockFi’s fortune dipped, culminating in a bankruptcy filing in November 2022.
The flaw in BlockFi’s business model became apparent as it lent crypto for speculative purposes rather than productive economic activities. This risky approach was compounded by market dynamics, such as the “widow maker” trade, where investments in products like the Grayscale Bitcoin Trust turned sour, resulting in substantial losses for investors.
Moreover, BlockFi’s entanglement with major funds like Alameda Research and 3 Arrows Capital added to its woes. When these funds faced financial difficulties, FTX, led by Sam Bankman-Fried, offered a $400 million loan to rescue BlockFi.&nbsp;
Nonetheless, this intervention led to further complications. As such, it raised que…
The post <a href="https://coinedition.com/market-expert-sheds-light-on-blockfis-bankruptcy-saga/" rel="noopener noreferrer nofollow">Market Expert Sheds Light on BlockFi’s Bankruptcy Saga</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.

Market Expert Sheds Light on BlockFi’s Bankruptcy Saga

Coin Edition

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