I can provide you with a list of some well-known and reputable cryptocurrency loan platforms.
reputable cryptocurrency loan platforms, are you kidding me?
BlockFi : filed for Chapter 11 bankruptcy.
Celsius Network : filed for Chapter 11 bankruptcy.
Nexo: The insurance amount for all deposits is up to $775 million. If something happens, you may not get anything from it.
Crypto.com:One of the platforms expected to go bankrupt.
In 2022, BlockFi became one of several companies that sought Chapter 11 bankruptcy protection in the U.S., along with FTX, Celsius Network and Voyager Digital. In November 2022,
The higher the interest rates, the more difficult it becomes for these platforms to access liquidity, and thus the more difficult it is for them to fulfill their pledges. Consequently, they either decide to reduce the return on investment or decide to close the deposits and flee with the capital.
If they decide to reduce the return means less liquidity and difficulty in fulfilling its obligations, which means stealing depositors’ money.