Some Clarity For BlockFi
Both BlockFi and Celsius were recently on the receiving end of a regulatory power move. I have not heard much of what has transpired on the Celsius front. However, BlockFi has managed to come to a settlement amount of $100 million with the SEC. This clarity and newfound “legitimization” has clearly encouraged BlockFi to increase exposure in the form of available assets on offer to clients. This has come at rather an uncomfortable time, especially as Kraken CEO, Jesse Powell recently encouraged exiting centralized exchanges.
BlockFi is not an exchange as such but is very much centralized. You can actually trade on BlockFi as well but I am not too sure of the extent to which this service is actually utilized. Clients generally look to park their digital assets with BlockFi for the sole reason of generating passive income via an interest-bearing account.
The Choice Is Yours
With recent events in Canada, the idea of holding assets on a centralized third-party platform has decreased somewhat in popularity. The need to hold your own keys seems to be even more of a necessity in these current times than ever before. This is where one has to weigh up the potential yield vs the risk. Placing coins in the hands of another once again requires trust. You will remember that this is what Satoshi set out to replace, trust. Trusting in math definitely trumps trusting in man.
BlockFi Experiences Significant Growth
BlockFi initially entered the market with a very limited offering, being BTC, ETH, and a couple of stablecoins. The portfolio of available assets on offer has since grown quite significantly, especially after this recent addition. BlockFi now has 15 assets available for users to earn monthly interest via an Interest Account. There are six new additions, which means that BlockFi increased the original assets on offer by more than 50%! I am guessing that this is only the start and that the company will look at aggressively adding more coins and tokens this year.
I suspect that after being hit with a $100 million expense, the company will look to increase revenue. In essence, the more offerings you present to your clients, the more revenue you stand to generate. This is how healthy businesses operate. The service expands and becomes more extensive. If BlockFi can simultaneously compensate for a significant loss, then job well done!
The Six New Additions
These are all pretty good additions in my opinion but some of the rates are not that great, while a few are actually fairly good. So, let’s have a look.
I have placed Cardano and Polkadot at the top of the list as I personally think that they offer the most competitive rates. These are also POS (proof of stake) coins which means they can also be staked to earn a form of “interest” via staking rewards. Being able to have instant access to your coins is also a great benefit to have. Withdrawals can be requested at any time but the actual processing of a payment is usually a day or two.
There are some issues currently in regards to new account registrations and earning interest for US residents. However, it only appears to be a temporary pause while the regulatory red tape is being finalized and put into place. New registrations and services should resume once these issues are completely addressed and in place. For non-US residents, services continue as usual and you can begin earning interest on any of the above-mentioned assets at any stage.
Receive $10 In Free BTC
For those outside of the US who are looking to open a BlockFi account, there is some good news! By using the following link and code – 262e89a0 you will receive $10 free in BTC provided your deposit exceeds $100!
Remember that there is a full suite of available assets to peruse on BlockFi.com! Thanks for the visit, until we meet again!