Where is the $100 million going to come from? Do they have that much money to spare? Or are their customers about to take a haircut?
On that topic, where does BlockFi's profit come from? They're offering 9% (previously 12%) interest on deposits. Are they really re-loaning that money to other people at the 20-30% interest rate required to produce those returns (high interest rates come with high default rates, so you need to overshoot your target by a lot to make up for defaults).
On that topic, where does BlockFi's profit come from? They're offering 9% (previously 12%) interest on deposits. Are they really re-loaning that money to other people at the 20-30% interest rate required to produce those returns (high interest rates come with high default rates, so you need to overshoot your target by a lot to make up for defaults).