Bitcoin Forum

Is BlockFi safe in the event of a stock market crash/another financial crisis?

Has anyone done, or can point me to, research as to the company's financials?

Been thinking about this a lot as I have a bunch of crypto tied up with them.

I do consider BlockFi to be financially sound and quite a solid of an investment platform. However, since you are talking here of a financial crisis maybe even bigger than what we experienced in 2008, to tell you honestly nobody knows what can happen all because during a severe economic  storm even big firms can collapse and those who we assumed to be well-managed can be showing cracks they never know existed beyond detection. Maybe the best thing to do is to diversify rationally.

How can anything be safe in case of some market crash and financial crisis?
BlockFi is just a company like any other,  they can go broke at any time, and there is nothing safer than holding Bitcoin on your own non-custodial wallet.
If someone else is holding Bitcoin and crypto for you than that is not really your Bitcoin.
Accounts can also be hacked, and Bitcoin can't be hacked.

I tried looking for the annual report of Blockfi in their SEC Edgar page (https://sec.report/CIK/0001726072) but unfortunately there are no documents pointing out to any kind of revenue breakdown for their company. Because the most important thing to see is where their revenue is mostly coming from and this will determine if they have some kind of survivable during the financial crisis. If there revenue is mostly coming from the trading side of their business then definitely they will take a hit as all the markets will be on a liquidation/bearish stage as the reflection of the economy but if there revenue is mostly coming from their loans then they will have a lot of chance to earn higher during this kind of period because people will try to look for ways on having money on their hands and asking for loans will be one of it.

Always keep in mind that when your coins are endorsed in a exchange/interest-earning platform or any third party then there will always be risks that come along with it. Blockfi will not be immune to a stock market crash or a financial crisis as would any company would be. A financial crisis will also have some effects on the crypto market. New users could flock to crypto or the old users would probably scramble to sell their coins as a way to have added cash or make means. If you're not at ease with leaving your crypto on blockfi then simply secure it on a wallet. Not your keys, not your coins as they say.

From BlockFi:

There you go, from the source, there are risks and nothing is guaranteed.

The only thing which is a sure bet is HODL.

But if you are willing to take the risk and understand those you can make your decision
to use a particular product.

Blockfi Review 2020: Pros and Cons - how to get bitcoin loan https://cryptocrow.net/bitcoinloans/

BlockFi CEO Zach Prince announced on Twitter, about a letter from the order from the new Jersey Securities Bureau, the order calls on BlockFi to stop accepting new BIA clients residing in New Jersey, starting from July 22, 2021.

Probably not.

The problem with all custodial models is that the operators get insanely greedy and take on massive amounts of leverage for no good reason at all. In essence, they deviate from their initial pledge of investing in liquid assets only. And with a fractional reserve system it's inevitable that we reach some sort of breaking point soon.

Blockfi and other services could pay you some interest, sure, but it's definitely not worth the risk that you are putting on.

Blockfi has been well researched on and guess what? They will not be safe in another crash or crisis. In fact,,, things will get much worse for them.

Please Google Chris Black and see all his criticisms of the socalled lending industry and defi and how everything is centralized in companies like blockfi. They will not last if a bank run happens to them!

The Alabama Securities Commission (ASC) has accused BlockFi of selling unregistered securities. The regulator gave the company a month to explain why the state should not stop its activities. https://www.cbs42.com/news/business/alabama-regulatory-agency-moves-towards-banning-cryptocurrency-companys-sales/


The company does not agree with the position of ASC, because it believes that BIA are not securities