Yesterday, BlockFi, a lender in the cryptocurrency space, filed for bankruptcy. The news is the latest in a stream of fallout events over FTX filing for bankruptcy.
According to the New York Times, “BlockFi, which was founded in 2017, filed for Chapter 11 protection in New Jersey. Its implosion is the latest example of an industry built on shaky foundations, with companies so intertwined that a single wobble can unleash financial chaos.”
FTX Fallout Spreads Through Crypto
BlockFi is only the most recent crypto lender to file for bankruptcy this year. Just this summer, two more, Celsius Network and Voyager Digital, also crashed in just a week of each other. This was when BlockFi aligned itself with FTX, which was seen as a stable member of the crypto space in June.
In the past, cryptocurrency companies were seen as invincible to the inflation and setbacks that centralized banks experienced. But now, that’s no longer the case. These crypto firms and startups are now just as susceptible to inflation and stock fluctuation as the brick-and-mortar banks of yesterday experienced. Experts say this is because, unlike when crypto companies started, they are now tied to the market as a whole. As a result, the most susceptible companies will be those firms that created their own cryptocurrencies. Other experts have long warned that the crypto boom would not last and that the boom experienced over the past two years wouldn’t last forever.
And, in case you missed it, take a look at APC’s article on how banks are steadily losing their workforce to fintech startups despite the crash of crypto. You can also stay up-to-date on relevant news to the technology industry through the APC Blog. We feature articles that spotlight thought-leadership topics that provide a range of information on tips for Hiring Managers and professionals and top technology news.
Kristen Burgess is the Marketing Specialist at Alliance of Professionals & Consultants, Inc. She has five years’ experience in curating content for digital platforms, social media contributions, and supporting marketing campaigns and strategies. Before joining the APC wolfpack, she worked in digital marketing for software as a service, giving her keen insight into the types of professionals APC hires today. In addition, she likes to stay up-to-date on the most relevant trends within the technology industry through thought-provoking podcasts and newsletters while paying attention to industry leaders’ trends. In her spare time, she serves on the Management Team and helps craft communications for the Junior League of Durham and Orange Counties.
