BlockFi CEO Zac Prince is addressing claims surrounding the DeFi protocol.
What Happened: In a blockchain letter named “DeFi Worked Great,” Pantera Capital deemed BlockFi to be an unsuccessful example of CeFi, while praising the work done by other protocols. Pantera Capital’s letter grouped BlockFi with other firms experiencing liquidity crises and other structural problems, such as Voyager VGX/USD and Celsius CEL/USD.
Prince responded on July 13 by deeming these claims to be baseless and misleading. He further went on to clarify that BlockFi does not use depositor funds for its DeFi activities, unlike other failing crypto firms.
His tweet stated, “Putting @BlockFi alongside Celsius and Lehman Brothers in the same sentence is misleading. They were/are bankrupt or insolvent – we are not.” Prince also clarified that BlockFi, contrary to Pantera Capital’s comments, is not set to collapse, stating that the firm is “operating ALL of our products just like we were a month ago (loans, trading, interest-earning, and credit card).”
In his recent interview with CNBC, Prince commented on the crypto lending firm FTX’s FTT/USD bailout to BlockFi, deeming it to support the firm’s balance sheets. In a statement released by BlockFi, the firm reversed its position on not accepting GBTC shares as loan collateral.
As stated by a BlockFi spokesperson, “We are not saying that we won’t support GBTC as collateral moving forward. Like any collateral, we constantly evaluate appropriate collateral haircut ratios and aim to accept as many types of collateral that our clients hold as possible.”