The downfall of crypto is now going way off the limits.
Ever since the market implosion occurred in May 2022, things have not gone down well with the market. A series of events happening around the world is consistently fragmenting the growth of the market and revival of the market back to normalcy. The conditions have been so poor that, many crypto experts have made the remark that crypto winter is just one small abbreviation of what is going to happen in the market in the near future. They coined the word “Crypto Hell” to refer to the phase, after crypto winter, which possibly has the capacity to wipe out the market and destruct it so hard that it might take years and years before revival.
A small case study about BlockFi is enough to show the current situation of the crypto market.
BlockFi, a crypto lending platform is struggling to resist in the market. The recent round for raising money at a discounted price was a failure for the company. The failure has inflated the risk of forcing the company into a financial restructuring.
BlockFi, which happened to raise $400 million in funding round that was valued at $5 billion, last fall, is now struggling to raise $100 million in funding at a valuation of $1 Billion, which is almost 80% lower to the funds raised in the previous round. According to the bank, JP Morgan Chase, the investors are least interested in funding the company considering the current pathetic situation of the market.
BlockFi, to be the next Celsius.
Celsius network, went ahead and froze the accounts of the customers from withdrawals to save the company and went on to hire restructuring advisors to counter the volatile nature of the market. Many in the market believe that, BlockFi could turn out to be the next Celsius.
On hearing such comments go round the market, the CEO of BlockFi, Zac Prince went on to comment that, Over the past five years, BlockFi has seen many such circumstances were the market’s volatility affected the company deeply. But he added that, his company has always come out a winner from such stinging market conditions.
From the recent actions of BlockFi, where in the withdrawals are being processed and a liquidation of a big hedge fund company reportedly Three Arrows, suggests that BlockFi is trying its best to withstand the market conditions and be swift in its decision making to affect the market in a positive manner.