Proof of State is the Wednesday edition of Fortune Crypto where Leo Schwartz delivers insider insights on policy and regulation. Sam Bankman-Fried isn’t going away. Physically, he’s likely going to prison, but his specter will haunt the crypto industry for years to come.

The Sam Bankman-Fried trial is an indictment of the crypto industry

Representations of cryptocurrencies are seen in front of displayed FTX logo in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration

Crypto's string of bankruptcies – Reuters

USDC issuer said that retail users can no longer mint the stablecoin from Circle—they'll need to buy tokens from exchanges or brokerages.

Retail Investors Can No Longer Mint USDC Directly Through Circle

In a move that's been called a Hail Mary, Sam Bankman-Fried is testifying in his own defense in his fraud trial. But mostly he seems to be dodging questions.

SBF Speaks: The Founder of Failed Crypto Exchange FTX Claims to Recall Very Little on the Stand

On Tuesday, crypto lender BlockFi came out of bankruptcy, stating that it will slow down functions and start returning crypto assets to customers nearly a year after it was damaged by the turmoil in the cryptocurrency industry amid the collapse of FTX.

Prison Reform, BlockFinale, Safety Dance, and Hello and Goodbye

Fallen crypto lending firm BlockFi announced on Tuesday that it has “emerged” from bankruptcy, making its bankruptcy recovery plan effective as of October 24. Emergence is when a firm that previously entered bankruptcy successfully reorganizes its balance sheet so that its ready to repay its creditors.

F|T: The FinTech Times – Is open banking in Canada dead?

The global digital asset market dropped by is trading under constant selling pressure. The cumulative market cap has dropped by another 2.5% over the past day. It now stands at $819 billion. However,

Crypto News Live Update Nov 28: Bitcoin Miners To Capitulate Again? Here's What Report Says – CoinGape

The crypto market valuation, that spiked by 0.03 percent in the last 24 hours, now stands on the mark of $1.27 trillion (roughly Rs. 1,05,73,111 crore), as per CoinMarketCap.

Crypto Price Today: Bitcoin Holds Ground Above $34,000, Stablecoins Tumble Alongside Tron, Leo

The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions

Why Bitcoin, Ethereum, and Dogecoin Are Rising Today – The Motley Fool

SBF testified a second time before the jury, and Solana came up as a discussion and how Alameda Research finances intermingled with the purchase.

SBF bought Solana at $0.20 using Alameda’s profits

BlockFi

blockfi

Is BlockFi the bank of the future? A growing number of financial analysts are starting to pose this question, and with good reason. Signs of the maturing crypto market abound, including the growth of traditional financial products constructed for digital currencies. Rising head and shoulders above the competition, you'll find BlockFi. What has rendered BlockFi so popular? For one, it recognizes there are crypto holders who want access to the value of their crypto-assets without the necessity of selling off their cryptos. What else do you need to know about BlockFi? Let's take a closer look. The Inherent Potential Associated With BlockFi was founded by Zac Prince, whose vision of a banking system that had moved beyond fiat became the basis for his financial experience. What were the results of his hard work and innovative approach to earning high yields off investments? The BlockFi platform The realization that the future of banking may look quite different than what we're used to. Put another way, the cryptocurrency world is giving the high street retail banking experience a run for its money. That's where BlockFi comes into the picture. BlockFi is arguably a bank, or at the very least, a competitor of banks. It offers a growing range of financial products to customers located worldwide, including crypto savings accounts. Although some users may wish to avoid stablecoins, the platform relies on providing financial products to users in emerging markets who prefer access to dollar loans. But can BlockFi disrupt banking? The answer to this question isn't immediately evident. The Crypto Management Platform Dilemma There's a fascinating dilemma when it comes to blockchain and cryptocurrencies. Crypto permits the world to nix banks, yet banks remain vital to the expansion and mainstream adoption of cryptocurrencies. For this reason, many experts believe a crypto-native company will become the bank of the future. After all, consumers want the same institutional "feel" while taking advantage of crypto borrowing and lending services. Of course, these borrow and earn paradigms are what traditional banks deliver to customers today. Hence, the need for centralized products such as BlockFi. BlockFi found early traction with digital currency adoptees. But the company has much bigger plans for consumer-facing products that appeal to a broad swathe of the population. The platform permits consumers to borrow (with collateral) to passively earn yields that traditional banks could never offer. BlockFi: A Crypto Leader remains the leader in cryptocurrency in the West. Why? Because the platform is well-capitalized. This characteristic has followed BlockFi since its inception. The BlockFi site In August 2019, the platform raised $18.3 million in its Series A. Then, in February 2020, it raised $30 million in its Series B. During this period, BlockFi expanded from $250 million in assets to $650 million. During the summer of 2020, the company announced a 100 percent revenue increase in Q2. This announcement put BlockFi on track to do $50 million in 2020 alone. The company's growth appears impressive. Unlike Nexo and Celsius Network, BlockFi didn't host an initial coin offering (ICO). Instead, the platform has received plenty of institutional backing. This backing has come with the perception as the most reputable platform in the space. BlockFi began with crypto borrowing, permitting users to leverage crypto-assets as collateral for loans. Later, the platform delved into earning, letting consumers deposit assets and earn interest on it. In 2020, the platform expanded its services to “exchange” functionality with the addition of a in 2021. As you can see, BlockFi now offers many of the same services and products you'd expect from a traditional banking system. Visa rewards credit card Yet, the platform maintains lower overhead, which means it offers consumers higher yields than traditional banks. Chinks in BlockFi's Armor Unfortunately, there's a downside to BlockFi's less regulated approach to financial products and services. As with other crypto companies, the platform remains dogged by that have made many consumers ward off cryptos at this stage in the game. security vulnerabilities Yes, BlockFi has enjoyed incredible growth over the past few years, but we can't ignore the many product and security issues it has also faced. For example, in the spring of 2020, the platform's systems were compromised. How? A hacker managed to access confidential account information from BlockFi users, including: Full legal names Dates of birth Activity history Balances Postal addresses No funds got stolen. But the case meant a significant failure for the company. It was both an embarrassment and a source of reputational damage. But this isn't the only incident that could risk the company's attempt to compete with traditional banking institutions. Another incident in 2020 resulted in the discovery of a significant bug. This bug permitted a hacker to send the same funds to himself multiple times. The result? The user in question acquired more than one million dollars in his account before BlockFi figured out what was going on. Yes, the platform caught him before any significant withdrawals took place, but this added another chink to the platform's armor. Other Vulnerabilities BlockFi Must Overcome Security issues aren't the only factors impeding BlockFi's ability to compete with banks. The company also has work to do when it comes to product execution. Unfortunately, the platform has a reputation for releasing hard-to-use and buggy products. These two characteristics aren't ideal when it comes to attracting a more extensive client base. Especially in the current environment where cutthroat competition abounds. Don't believe us? Take a look at their customer reviews. You'll find a wide array of complaints listed, from app issues to lack of user-friendliness. Other bad reviews include verification codes taking "forever" and needing to log in every single time you use the app. Glitchy products and confusing UX have some consumers heading for the hills. What's more, the company has done a poor job when it comes to branding. The company must remedy these areas before it can expect to compete with mainstream banking. BlockFi's Company Culture Are the problems listed above really that bad? We believe these issues could prove fixable. After all, BlockFi could hire a fantastic design agency to revamp its brand. It could hire the best of the best engineering consultants to hunt down and remedy glitches and bugs. But while these steps might address the issues listed above for a time, changes to company culture are also needed. Unfortunately, BlockFi has been dogged by years of sloppy product execution. This belies something much more destructive, a top-down mentality that shipping anything other than excellence is okay. In other words, BlockFi upper echelons may not understand the vital importance of product experience. Company culture may not currently support design excellence. As a result, precision, craftsmanship, and strong execution may not ultimately matter. Indeed, if this proves the case, BlockFi has serious obstacles to overcome. A mediocre mentality currently appears to permeate the BlockFi culture, and it rarely remains contained within engineering and product areas. Instead, this culture has tainted other areas of the organization. In other words, no consulting firm or design agency alone can fix some of these insidious aspects of company culture. These deeper issues require strong leadership for course correction. Can Zac Prince rise to the challenge? Only time will tell. But we can say one thing with certainty. BlockFi can't expect to clinch a role as the bank of the future without addressing these inherent issues. The Team at BlockFi Taking a closer look at BlockFi's team may reveal where part of the problem lies. The group hails primarily from Wall Street rather than the blockchain community. As a result, you could argue that BlockFi's blockchain and crypto integrations prove both superficial and awkward. The company accepts crypto assets for deposits. But the team fails to leverage any of the low-level DeFi protocols that make this area of finance exciting. The team at BlockFI's Wall Street heritage isn’t doing them any favors on the product and technology side. But it has served them well when it comes to securing institutional clients. Securing these clients remains one of the company's primary strengths. BlockFi has a robust institutional business. For example, in 2020, they signed Three Arrows Capital as a strategic investor. This crypto hedge fund does A LOT of borrowing. Zac Prince noted in BlockFi’s announcement that bringing them on aligns well with its international expansion objectives. BlockFi and the Future of Money in Decentralization BlockFi comes with both advantages and disadvantages for its many users. The company caters to business customers looking for a way to dabble in crypto investment not currently offered by mainstream banks. But the company needs to spend some time seriously addressing the vulnerabilities that are currently constraining it from being a true competitor to more traditional banks. This will involve a greater focus on the product and technology side of things at BlockFi. The company will also need to invest in better branding and cultivating a company culture that celebrates excellence in every area. With a more elegant product offering and focus on user-friendliness, the platform remains well-positioned to dominate the crypto-financial sphere.

Why BlockFi Could Be the Bank of the Future

BlockFi Review (12% APY): Is It Really Safe and Worth It?

On March 23rd, BlockFi announced the lowering of their bitcoin interest rates. Starting 1 April, it’s just 2% for Bitcoin holdings starting with 1 BTC and only 0.5% for any Bitcoin holdings exceeding 20 BTC! For many previous customers, this announcement has created a big stir and many users feel like left out in the cold. Most of them are now actively looking for more attractive alternatives that offer higher interest rates. In the following post we present the top 3 alternatives to BlockFi: 1. Cake DeFi Cake DeFi is a regulated company based in the global financial hub of Singapore. ( : ) Disclaimer The author is a Co-Founder of CakeDeFi Cake DeFi's vision is to make investing easy, personalized and fun. In line with its name, Cake DeFi advertises "sugar-sweet"  returns on Bitcoin investments of up to 7.5% annually. Cake DeFi's lending product is thus similar to that of BlockFi, but it offers a much higher return regardless of how many Bitcoins are invested. Furthermore, the base return of 5% is guaranteed and backed by independent partners. If the bitcoin price rises sharply within a lending period, it can result in returns of 6.24% or even 7.5%. Since the beginning of the year, there have been a total of 12 payouts, five of which have already paid out returns of 6.24% and one of which has even paid out a whopping 7.5%. Unlike the two platforms presented below - Celsius and Nexo - Cake DeFi offers the entire yield distribution in the native coin, i.e. Bitcoin, Ethereum or USDT, and not in a separate company token. So especially if you think Bitcoin might still rise in value in the near future, or you want to get paid in Bitcoin itself rather than in corporate tokens, Cake DeFi is worth it with its unbeatable high returns while offering a guarantee! Click Here if you'd like to learn more about Cake DeFi. 2. Celsius Celsius is the platform with the highest assets under management in our list of the best BlockFi alternatives and had its Initial Coin Offering - where the company token "CEL" was issued - in 2018. The platform offers bitcoin returns of 4.06% per year, regardless of how many bitcoins are deposited. It is even possible to increase this return to 5.10% by holding at least 25% of your portfolio in the company token CEL. This gives you a "Platinum Level" on Celsius and thus higher returns. Furthermore, Celsius offers the possibility to borrow US dollars by providing collateral in the form of various cryptocurrencies. So overall, Celsius is an interesting alternative to BlockFi, especially if you manage a larger number of bitcoins and also don't mind holding 25% of your portfolio in the company token CEL, which itself is subject to market fluctuations. Click Here if you'd like to learn more about Celsius. 3. Nexo Nexo aims to offer "banking on crypto," meaning that the platform not only offers returns on Bitcoin, but a whole range of services you might be familiar with from your bank: Credit cards, savings accounts for fiat currencies, and taking loans. Similar to Celsius, Nexo also has its own company token called "NEXO." At the basic level, Nexo offers 5% APY on bitcoin. However, if you hold 10% or more Nexo tokens in your portfolio, that becomes 6% - with the option to "earn in NEXO" and make 8% while receiving the much more speculative and volatile company token. If you're more looking for a "crypto bank" and are not so focused on earning returns in the native coin Bitcoin, Nexo could be an interesting alternative to BlockFi with its credit card offering, interest accounts and ability to borrow money. Click Here if you'd like to learn more about Nexo. Conclusion: which bitcoin interest earning platform is best for me? As can be seen in the table below, for most customers - especially if you don't want to invest a significant portion of your portfolio in centralized company tokens - Cake DeFi offers the most attractive return. With a clear focus on being able to generate high returns on Bitcoin and other cryptocurrencies as easily and user-friendly as possible, Cake DeFi is suitable for beginners and experienced crypto investors with many Bitcoins alike. So Click Here to sign up for Cake DeFi now and get a $20 signup bonus for a limited time only! ( : ) Disclaimer The author is a Co-Founder of CakeDeFi

3 BlockFi Alternatives That Offer A Higher RoI on Your bitcoin

Securities and Exchange Commission (the “Commission”) v. Caroline Ellison (“Ellison”) and Zixiao “Gary” Wang (“Wang”) Court Filing,  Dec 21 2022 is part of . You can jump to any part in this filing . This is part 10 of 12. HackerNoon’s Legal PDF Series here Feature Image: HackerNoon’s Stable Diffusion AI, Prompt “God complex” : 1:22-cv-10794 Case Number : Securities and Exchange Commission (the “Commission”) Plaintiffs : Caroline Ellison (“Ellison”) and Zixiao “Gary” Wang (“Wang”) Defendants : Dec 21, 2022 Filing Date : US District Court, Southern District of New York Location : Jorge G. Tenreiro, David L. Hirsch (not admitted in SDNY), Ladan F. Stewart, Amy Harman Burkart, David J. D'Addio - Attorneys for the Plaintiff Filer FACTS D. Despite the Precarious Financial Position of FTX and Alameda, Bankman- Fried and Ellison Continued to Use FTX Customer Assets in the Summer of 2022, Including to Rescue Distressed Crypto Firms and to Further Mislead Investors. 98. In May 2022, the crypto markets plummeted due to a significant loss in value of certain crypto assets and networks and the collateral effects on the interrelated markets. Bankman-Fried characterized FTX, and himself, as playing an important role in stabilizing the industry. Bankman-Fried entered into a series of transactions with other members of the industry, providing credit to and taking over other failing firms. On or about June 21, 2022, after giving a $250 million line of revolving credit to BlockFi, a global crypto financial services company, to provide the company with access to capital to ease liquidity concerns, Bankman- Fried tweeted: “We take our duty seriously to protect the digital asset ecosystem and its customers.” 99. . As discussed above, as a result of the same market conditions impacting BlockFi’s liquidity, many of Alameda’s lenders demanded repayment of loans they had made to Alameda. Ellison, at the direction of Bankman-Fried, drew down billions of dollars from its “line of credit” from FTX to repay some of Alameda’s loans—money that came from FTX’s spot market funded by FTX customers. At the same time that Bankman-Fried was positioning himself as a hero in the industry, however, the plummeting value of crypto assets was impacting Alameda, and as a result impacting FTX 100. Thus, in the summer of 2022, Defendants and Bankman-Fried knew, or were reckless in not knowing, that FTX was in a precarious financial condition. However, Bankman- Fried and Ellison, with Wang’s knowledge, continued to spend hundreds of millions of dollars to purchase and support other crypto companies, and allowed Alameda to use FTX customer funds to repay its debts. In addition, Bankman-Fried, Wang, and other FTX executives continued to withdraw customer funds in the form of the poorly documented and undisclosed “loans” described above. Specifically, on or about July 22, 2022, Bankman-Fried loaned himself $136 million and, on or about September 28, 2022, Wang signed a promissory note to Alameda for $13.7 million, which was used by Bankman-Fried for a venture investment. Defendants and Bankman-Fried knew, or were reckless in not knowing, of the significant financial risk these “loans” posed to both Alameda and FTX. Collectively, Defendants’ and Bankman-Fried’s actions in the summer of 2022 further imperiled FTX’s financial condition. 101. Defendants knew or were reckless in not knowing that Bankman-Fried continued to present a false and misleading positive account of FTX to investors, despite FTX’s tenuous financial condition at this time. In a meeting with FTX’s U.S. investors in September 2022, for example, an FTX presentation included the claim that: “Outside of BlockFi, we didn’t increase our exposure to crypto.” This statement was false and misleading: the customer funds that FTX diverted to Alameda, including customer funds that Ellison used to repay Alameda’s lenders, were collateralized in part by Alameda’s FTT holdings. Defendants and Bankman-Fried knew or were reckless in not knowing that, as a result, FTX’s exposure to crypto, including its own FTT token, increased substantially as Alameda increased its borrowing, backed by FTT as collateral, in the second quarter of 2022. 102. In that same meeting with FTX investors, FTX also represented that certain investments did not involve the assets of FTX or its customers. Contrary to that representation, two $100 million investments made by FTX’s affiliated investment vehicle, FTX Ventures Ltd., were funded with FTX customer funds that had been diverted to Alameda. Continue Reading . Here About We bring you the most important technical and insightful public domain court case filings. HackerNoon Legal PDF Series: This court case 1:22-cv-10794 on Dec 21 2022, is part of the public domain. The court-created documents are works of the federal government, and under copyright law, are automatically placed in the public domain and may be shared without legal restriction. retrieved

Crypto winter did not spare FTX or Alameda, although SBF pretended that it didn't

7 Best Crypto Saving Accounts to Earn Up To 12% Bitcoin Interest

As of June 2020, there were more than in circulation. By 2027, the market value for cryptos will reach $1,758 million! The impressive statistics don't stop there. 5,500 cryptocurrencies Among the top cryptos, Bitcoin remains king. Its price has skyrocketed by more than 70 percent year-to-date, and many people are predicting a very bright future for this digital currency. How brilliant is this future? Consider this... , Kraken's CEO, asserts Bitcoin will become the world's currency, eventually hitting $1 million as a price target. With all of these impressive prognostications, it's understandable to want to get in on the action. Jesse Powell But how safe is a crypto savings account? Here's what you need to know about choosing the right crypto-based savings accounts for your current needs. Crypto Finances: What You Need to Know Recent price surges in Bitcoin (BTC) and Ethereum (ETH) have many consumers scrambling to get into crypto investing. But these consumers don't know where to start or how to stake their funds safely. Exacerbating this dilemma is unwanted attention from hackers excited by the potential presented by cryptocurrencies. The economics of digital currency indicates that hacking attacks will not only continue but increase. Unfortunately, tracking the activities of hackers can prove tricky. Why? Because these individuals are also masters of eliminating their digital footprints. What's more, cryptos are not regulated by a central entity or bank. On the one hand, their decentralized approach cuts out the middleman and nixes many layers of potential bureaucracy and corruption. On the other hand, it also means that consumers have no legal recourse when their digital funds get lost or hacked. The trick remains learning how to take advantage of digital currencies while protecting your assets. That said, with some foundational knowledge in best practices, you can begin earning money faster than you may realize. Want to know more about the future of cryptos? Check out this fascinating read on tapping into . Ethereum with Dmitry Buterin Why You Need a High-Yield Crypto Account It's all-too-easy to let the risks associated with digital currencies deter you from becoming involved in the market. But that would be like refusing to use the internet for fear of getting a virus. Life itself comes with risk. The best approach involves mitigating risk and then moving forward, whether we're talking about using the internet or dealing in cryptos. After all, the benefits you stand to reap from a crypto savings account outweigh the potential hazards. Just think about it, earning up to ten percent on your dollars in a straightforward savings account. Of course, you must convert your dollars into stablecoins and then place them in a crypto banking account before you can start earning at these rates. But how do you harmonize the extreme volatility of cryptos with acceptable financial practices? By following the safest digital currency practices. Only then does it make sense to include cryptos in a balanced portfolio. What if you're also interested in learning more about crypto trading? Here's what you need to know about while staying aware of its super cycle. What's more, check out this quick yet essential read on and its stock-to-flow ratio. how to long Bitcoin Bitcoin halving If you're sticking with us to learn more about safe and secure crypto savings account features, here's what you need to know. How to Maintain a Safe Crypto Savings Account What are some precautions you can take to protect your assets when dealing with cryptos? Let's start by considering the wallets where you store funds. Physical wallets or online wallets should be used to keep most of your crypto assets. That also means you should only keep a small fraction of your funds in an online wallet. You should also store your physical wallet in a secure and private place, such as a safe deposit box. Remember to separate your private and public keys. Secure both with strong passwords and multi-factor authentication. As cryptos continue to grow in popularity, you'll see more traditional options emerge. However, remember that you are ultimately responsible for ensuring the safety of your cryptos. One of the best ways to do this is by never reusing passwords across your accounts. This tip proves especially important since crypto services remain prime targets for hackers. In other words, you should assume that all of these platforms will get breached at some point. It's important to remember that cryptos represent innovative technology that continues to evolve quickly. Nevertheless, the easiest and best way to protect your assets remains these tried-and-true security tactics. When you couple password rotation with a platform that offers two-factor authentication, you can ramp up the safety of your funds. You may also wish to consider a trusted password manager, which will take the guesswork out of the process. Tips for Safe Crypto Use You should also spend some time carefully researching the platforms you're considering. In the process, you need to gain an understanding of each company's security features. That way, you'll have an overview of the steps each one takes to protect your money. How do you know if an entity can be trusted? There are a few hallmarks you should look for. These include incorporating the best security practices on the market today, from SSL/TLS encryption to air-gapped devices kept offline to store cryptos. You should also consider splitting your assets across more than one platform. That way, if there's a problem with one entity, you won't risk all of your funds in a single event. But this tactic will only work if you use different, complex passwords for each platform. This last tip remains imperative, and it again underscores the need for a secure password manager. That way, you can automate the entire process and never lose a password. You also need to understand that phishing campaigns represent a significant issue. These attacks can happen at any time and target you via any device or platform. In other words, phishing attacks can take place via social media, texts, third-party messaging platforms, or email. But you also need to understand that there are malicious mobile apps that can log your keystrokes or watch the activity on your screen. Watch out for all of these. While you likely install antivirus software on your computer, consider doing the same with tablets and smartphones. After all, think about how much information you place on these devices. The possibility of strangers gaining access to this information would prove devastating. Make sure that you secure them. What to Look for in a Platform When looking for entities to work with, pay attention to two main things, the nation where the company is based and the licensing they have received. As a crypto investor and trader, it behooves you to work with companies that are located in stable, developed, democratic nations. Avoid working with companies located in nations known for corruption. Instead, look for entities that are regulated and well-licensed. Licenses may include both a traditional operating permit as well as governmental registrations. You should also take a hard look at each company's history and reputation. These two factors will provide you with plenty of insights into the culture of a brand and how they treat customers. The Safest Crypto Platforms What are some of the safest crypto platforms to use? Some of the most reputable entities to host your crypto savings account include BlockFi, Celsius Network, and Gemini. Here's a mini-intro into each of these platforms. BlockFi If you've spent any time researching crypto platforms, you've likely heard of the . One of the most popular platforms out there today, BlockFi is based in the US and enjoys a stellar reputation. The platform boasts backing from reputable investors such as Winkelvoss Capital and Coinbase Ventures, too. BlockFi platform Celsius Network Another company worth considering is . This UK-based entity boasts offices in the US and UK. Celsius has some of the best and most transparent disclosures. They're also launching a self-insurance plan for all users, which will up the ante when it comes to protecting your assets. Celsius Network Gemini The is another well-known company that boasts famous founders, the Winkelvoss twins. Based in New York, Gemini is licensed and regulated in America and has maintained a trustworthy reputation. Gemini platform Learn to Harness Cryptos Cryptocurrencies have taken the financial world by storm and with good reason. It's only natural you'd want to get in on a piece of the action with a crypto savings account. The information above will help you to do this securely and safely. That said, doing your research and following the recommended precautions is ultimately up to you. Are you ready for more fascinating tech-related stories? Keep reading to learn more about the on the dark web. challenge of fighting crime

Are Crypto Savings Accounts Safe to Use?

Crypto lending is a growing market that started only a few years ago. Unless you're new to cryptocurrency, you probably have heard this term at some point. Crypto lending works similarly to peer-to-peer lending, where borrowers are connected with lenders via an online crypto lending platform with cryptocurrency as the currency of trade instead of fiat money. Technically, the more appropriate term is crypto-secured lending because not all loans are denominated in cryptocurrencies. Individual investors or hodl-ers often use their crypto assets as collateral for cash loans that can be used for investment or as working capital. The mechanism may differ depending on the crypto lending platform, but to put it simply, borrowers use their crypto assets such as bitcoin, as collateral to obtain a fiat loan or stablecoin loan. Lenders then provide the assets for these loans in exchange for interest rates on the asset. There are two types of crypto lending: centralized and decentralized. The main difference of each type of crypto lending here is who or what is handling the lending and borrowing process; a business or a protocol. Centralized Finance (CeFi) Crypto Lending They are entities or companies that handle the user's onboarding process, such as implementing KYC (Know-Your-Customer) and exchanging cryptocurrencies and fiat money with a custodial system in place to protect the assets. They are also more flexible in forming partnerships with other businesses and negotiating customized loan agreements. Centralized crypto lending platforms use margin lending to attract users. They offer to maximize the productivity of their crypto assets safely and easily. Furthermore, it is also common for them to offer favorable interest rates and terms to crypto lenders compared to decentralized crypto lending. Examples of centralized finance crypto lending platforms: is a Singapore-based fintech startup that offers financial services where users can deposit crypto assets and earn favorable interest rates. The rates are 6% interest rate (effectively 6.2% APY) for Bitcoin and 8% (effectively 8.3% APY) for USDC and USDT stablecoins. There's no lock-in periods or minimum deposits, and all deposits automatically earn the best rate. Hodlnaut Besides interest account, Hodlnaut also offers institutional loans where corporates can obtain a credit line using their digital assets as collateral. Hodlnaut is started by two entrepreneurs and self-proclaimed bitcoin maximalist in Apil 2019 as part of Antler's portfolio company, a global VC firm backing the early-stage startups. is a crypto lending startup that started in 2017 from New York that offers financial services to crypto investors such as interest account, crypto loans, and trading. Their products and services aim to help crypto hodlers do more with their digital assets. BlockFi The interest account offers varying rates on different assets; 6% interest rates for BTC, 4.5% for ETH, 5% for LTH, and 7% for USDT, to name a few. BlockFi also offers USD loans with rates starting from 4.5% backed by cryptocurrency to hodlers willing to offer their digital assets of bitcoin, ether, or litecoin as collateral. is a crypto lending platform similar to Hodlnaut and BlockFi, where users can borrow and lend cryptocurrencies. They also have their own native token called CEL. Through the Celcius Loyalty Rewards program, users can earn additional interest rates once their overall wallet reached a certain threshold in CEL tokens. Celsius Network As for the interest rates, Celsius Network offers 15.89% APY for USDT, 6.13% APY for BTC, and 6.13% for X AUT (Tether Gold), among other cryptocurrencies that they support. Founded by Alex Mashinsky in 2017, the company has a mission to help people to unbank themselves and challenging the current financial structures with a new model that's decentralized. Decentralized Finance (DeFi) Crypto Lending While in centralized crypto lending, the lending and borrowing processes are trusted to a company or a group of people. It is governed by a set of protocols in decentralized crypto lending, also popularly called DeFi (decentralized finance). The protocols rely on smart contracts created to automate the distribution of crypto loans and interest rates payments. Typically, DeFi platforms are non-custodial, without KYC, and focus on cryptocurrencies only. The interest rates offered also varies depending on the supply and demand in the market; however, they're generally are lower than the rates offered by centralized platforms. DeFi is more transparent than centralized as anyone can access the protocols, and the transactions are recorded on public blockchains. Examples of decentralized finance crypto lending platforms: is a decentralized lending platform on Ethereum that supports DAI, a stablecoin whose value is pegged to USD. Deemed as the first DeFi project, Maker allows any user to take out a DAI loan autonomously by staking their digital assets like ether (ETH) as collateral. There is no KYC involved, and smart protocols perform all lending activities. Maker is a lending protocol running on ethereum that lets users lend and borrow crypto assets without any middlemen. In a nutshell, it is a pooled algorithmic money market protocol where the lenders don't directly lend their assets to borrowers but a liquidity pool where borrowers can borrow money. The pool is not governed by people, a bank, or the creator's team (Compound Finance) but a series of smart contracts. Compound These contracts match borrowers with available assets and automatically manage interest payments from borrowers to lenders. Looking at the supply and demand on compound, the protocols use algorithms to determine the interest rates. Similar to Maker, it is permissionless as there is no KYC or ID verification, and anyone in the world can start lending and borrowing at any time. In Conclusion Although crypto markets are relatively young and have only been around for a few years, there's a lot of potential for crypto lending. It is an emerging concept that has brought quite an attention from crypto investors and traders. Whether you choose to participate in centralized or decentralized lending, expect to see further projects in both spheres spurred by convincing growth in cryptocurrency deposits and loans' productivity.

Types of Crypto Lending Platforms: Centralized and Decentralized Finance

How to Use Bitcoin: The Best Ways to Buy and Spend Your Bitcoin A major roadblock for on-boarding new crypto users is that they don’t think there’s any real-world application for their Bitcoin. Even for seasoned crypto investors, it’s hard to find trusted and reputable places to use, trade, and spend their bitcoin. The ultimate goal of the industry is to make crypto a part of people’s everyday lives. By providing consumers and professionals a way to transact which is cheaper and more global than ever before, bitcoin is creating a new landscape which takes power away from financial institutions and puts it back in the hands of the individual. There are already a number of market-leading companies making it easy to buy, spend, earn, and use cryptocurrency as a part of your everyday life. How to Buy Bitcoin Places to purchase cryptocurrency have already been evolving for several years. At first, bitcoins could only be purchased via underground markets, done person-to-person, out of sight from the general public. These days there are a variety of different trustworthy places to buy bitcoin, making it much easier to get yourself on-boarded to the newest revolution in digital currency. 1. Use Cryptocurrency Exchanges Exchanges are platforms where you can use your hard-earned cash to buy bitcoin. They are generally operated by a centralized entity which helps facilitate trades between buyers and sellers through an order book. Additionally, funds (fiat or cryptocurrency) are stored on the exchange itself, providing quick and easy access to your assets. The success of an exchange is largely driven by high-trading volumes. This provides an exchange with the liquidity to place orders (buys or sells) and have it filled quickly. Many of these services, such as and , require personal information because of anti-money laundering (AML) and know-your-customer (KYC) regulations in the United States and abroad. You can read more about how in our resource center. Coinbase Gemini BlockFi uses KYC/AML An alternative to these centralized exchanges are decentralized marketplaces. Here, trades are conducted directly between two parties, without any centralized entity controlling or facilitating the trade. Funds are not stored on the exchange, providing you with the ability to keep control of your funds at all times without having to trust a third party to custody them. is a well-known example of a decentralized marketplace where buyers and sellers come together to conduct trades directly with one another. On LocalBitcoins there are a much wider variety of options for making your bitcoin purchase, such as paying via PayPal, Moneygram, or Venmo. Other platforms like offer an easy and trustless way to buy and sell cryptocurrency. Just like a centralized exchange, Kyber has an open order book, but requires the use of an Ethereum Dapp wallet, like , to store and transfer your funds. LocalBitcoins Kyber Swap Metamask If you don’t want to bother with the complexities of an order book, bid/ask spreads, and the like, there are alternative exchanges that allow for a quick and easy bitcoin purchases. Exchanges like allow you to quickly swap bitcoin at the drop of a hat. Unfortunately, you will need to already own another cryptocurrency in order to purchase bitcoin using services like Shapeshift, as they don’t accept fiat currency as a payment method. They are best used for quick “swapping” one cryptocurrency for another. Shapeshift 2. Turn Unused Gift Cards into Bitcoin If you have unused gift cards lying around the house, don’t let them go to waste. Instead, use them to purchase bitcoin. Sites like let you purchase bitcoins using your unused gift cards “by connecting with others who are looking to purchase those same gift cards. You may, however, have to sell-off your gift cards at a discount in order to find a willing partner to transact with. If you are willing to do so, this is a great way to turn unused gift cards into bitcoin. Paxful 3. How to Use Bitcoin ATMs Everyone knows how to use an ATM, so it would only make sense that you should be able to purchase bitcoin at an ATM as well. No, you still can’t purchase bitcoins at a regular ATM, but you can do so at a special bitcoin ATM which accepts cash bills in exchange for bitcoin. Just deposit cash in the machine and out comes a slip of paper with your new wallet information and bitcoin balance. You can then take this paper to another ATM and withdraw cash at a later date, or spend your bitcoins anywhere they are accepted. Unfortunately, Bitcoin ATMs are not yet universal, and are located sparingly across the globe. To find a Bitcoin ATM near you, check out , a global repository with the locations of all current Bitcoin ATMs. Who knows, maybe one day there will be a bitcoin ATM on every corner ready for you to use. Bitcoin ATM Radar An ATM alternative is to use to trade in your spare change for Bitcoin. Yes, those machines where you can take your piggy bank full of quarters can now spit out bitcoins instead of cash or gift cards. In fact, Coinstar isn’t just for coins, it works for bills too. You can even deposit up to $2,500 to buy bitcoin on the spot. This makes Coinstar an another great resource for buying bitcoins fast. Coinstar Now that you have learned about some of the ways you can buy bitcoin, let’s look at where you can use bitcoin in your everyday life. How to Use Bitcoin We get a lot of questions from new cryptocurrency owners, things like, “how can I spend bitcoin?” or “where do people like to spend bitcoin?”. You might be surprised at the amount of places you can use bitcoins. Not only can you now spend bitcoin to purchase your favorite video games, you can also use it to pay for that new rug you have been wanting on Overstock, or even put money toward a prepaid SIM card. 1. Make Online Purchases Using Bitcoin A growing number of online retailers are accepting bitcoin as a valid form of payment. Overstock has been a vocal leader in enabling you to use bitcoins for any purchase on the site. Other companies supporting bitcoin as a payment method include Microsoft, Newegg, TigerDirect, and many others. At the moment, ecommerce sites which accept bitcoin are relatively rare, but the fact that these huge companies are willing to take the plunge is a great sign for the future of the industry, so make sure to use every opportunity you have to shop on a site which allows you to use bitcoin if you can. There are also new ecommerce platforms which are designed to only accept bitcoin and other cryptocurrency as forms of payment. The biggest marketplace at the moment, , is a peer-to-peer marketplace where you can buy anything from local food and beverages from around the world, to art and even digital goods. The platform takes precautions to keep transactions safe and secure, using an escrow service for payment and user reviews for buyers to be made aware of unethical sellers. OpenBazaar While you’re at it, you can use bitcoin to top-up your prepaid SIM card with . Just enter your phone number, the amount you want to top-up, and pay with bitcoin. You can even send money to family or friends abroad to top-up their SIM card. This is especially useful in places where the financial infrastructure is limited. If you are a gamer, CryptoRefills also allows you to use bitcoin to purchase game vouchers for some of your favorite games, like World of Warcraft, Counter-Strike, and more. CryptoRefills 2. Buy Gift Cards Using Bitcoin Imagine being in a Best Buy and seeing that new pair of headphones you have been looking for. The only problem is, you are out of cash and only have access to your bitcoin. But Best Buy doesn’t accept bitcoin as a mode of payment. What do you do? With services like the mobile app, you can quickly turn your bitcoin into a gift card and make that purchase you were hoping for. Gyft The retail stores in which you can use bitcoin is almost unlimited thanks to services that allow you to exchange your bitcoin for gift cards. Sites like allow you to buy gift cards from hundreds of sites with your own bitcoins, effectively letting you spend bitcoin as cash at your favorite stores. eGifter Didn’t spend the whole gift card? Transfer it back into bitcoin with Paxful. 3. Get a Debit Card that Uses Bitcoin With the popularity of bitcoin rising, new and innovative financial products have been introduced to make it easier than ever to spend your bitcoin anywhere. One such innovation is allowing bitcoin to be stored on a debit card and spent anywhere debit cards are accepted. Where can I spend my bitcoins? With these services you can spend your bitcoin anywhere! offers a debit card on which you can load your bitcoin. The company partnered with Visa to allow users to spend bitcoin instantly anywhere Visa is accepted. You can even manage your account and card balance with the BitPay mobile app. provides a similar Visa debit card product, and even provides 0.5% cash-back in bitcoin on all in-store purchases. BitPay Wirex is another Visa debit card option, but is also so much more. The app allows you to send bitcoin to friends (like Venmo), gives you cash discounts at your favorite merchants (like and ), and even allows you to buy and sell bitcoin on the app directly. It’s like an exchange, debit card, and bank account all rolled into one. Cash App Ebates Lolli How to Earn Bitcoin Outside of buying bitcoins outright, there are a number of alternative ways to put even more bitcoin in your wallet without spending any money. Earning bitcoin often doesn’t require anything more than registration on an application, or depositing your existing holdings into a . bitcoin interest-bearing account 1. Earn Bitcoin with Compound Interest It is often said the most wealthy people let their money work for them. By utilizing the power of compound interest this is exactly what you can do with your bitcoin. What does this mean? Instead of keeping your bitcoins in a wallet, you can put them in an interest-bearing account, which will earn you more bitcoin each month. Products like the provide customers interest for simply depositing bitcoins into their account. BlockFi Interest Account (BIA) Just deposit your bitcoins into a BIA and let the interest role in. Clients can earn up to 6.2% APY every year on their bitcoin. The best part? Interest compounds monthly. At the beginning of each month, your interest earned in bitcoin will be deposited into your BIA account. You will immediately start to earn even more interest the next month, because your balance continues to grow as interest is added. Learn how depositing to a BIA account can allow you kick your feet up and watch the bitcoin roll in using . compound interest with bitcoin Learn more about . how BIA works here 2. Earn Cash-Back in Bitcoin One of the easiest ways to earn bitcoin is through a cash-back service like . Lolli users earn bitcoin as cash-back each time you make a purchase online with a partner retailer. Their partner network includes over 500 top brands, such as Walmart, Barnes & Noble, Gap, Best Buy, Overstock, and more. Lolli is similar to other cash-back services like , except that instead of paying your cash-back in dollars, you are paid in bitcoin. So, next time you are ready to make your next online purchase, stop and remember that you can earn bitcoin with just a few clicks using . Lolli Ebates the Lolli Google Chrome extension Another exciting way to earn Bitcoin as cash-back is with . With Pei, you can unlock cash-back in BTC or USD. Their app is very simple. The first step is to connect your bank account, debit cards, and credit cards to your account securely . Then, every time you shop at a store in the , you will receive cashback directly into your Pei account. Their partners include companies like Target, Chipotle, 7-Eleven, and a number of other major retailers. The best part is that you not only earn Bitcoin through Pei, but you still get to “double dip” on the points and rewards you would normally get from your credit cards. Pei is one of the best ways to passively earn Bitcoin without having to think about it. Pei via Plaid Pei merchant community 3. Get Paid in Bitcoin Some companies prefer to pay rewards out in bitcoin because of how cheap and fast it is to transact using the blockchain. These days, there are a variety of small tasks and jobs you can complete to earn bitcoin. These include: Taking surveys Completing administrative work Replying to emails Reviewing mobile apps Doing freelance work is a platform which is used by some of the best and brightest in the cryptocurrency industry, like Naval Ravikant and the Winklevoss twins. After creating a professional profile you will start to earn bitcoin each time you respond to a message from a recruiter, business, or researcher. Earn You can also head over to or the for more skilled, and often permanent jobs that pay in bitcoin. Just be careful, any job which pays in bitcoin requires trust between parties. If you are serious about working to earn bitcoin you should think about using an escrow service to ensure payment. Cryptogrind Jobs4Crypto Reddit

The Best Ways to Buy and Spend Your Bitcoin

Zac Prince on the Future of Banking With Bitcoin

The crypto industry’s biggest secret -  the Shadow Banking System, where cryptocurrencies worth billions of dollars are borrowed & lent on an un-collateralized basis, between some of the industry’s biggest names, was exposed in recent months as the biggest driver of the spectacular bull market... . as well the collapse & contagion that is still ongoing While the crypto shadow banks are going through their most difficult moments, it was the Securities and Exchange Commission’s (SEC’s) decision to declare a lending program an unregistered security offering might have unintentionally saved Coinbase from the same deadly blow that struck BlockFi, Celsius, Voyager, Gemini, and many others. Crypto shadow banks are companies that engage in bank-like activities such as borrowing & lending but obviously are not licensed banks, hence fall outside the regulatory constraints of fully licensed banks, which are required to have capital reserves to cover losses from bad loans or available liquidity in case of a bank run. With the promise of “L ”, crypto shadow banks such as Celsius, BlockFi, Voyager & Gemini managed to attract billions of AUM from professional and retail investors, which got lent out further to the world’s biggest crypto whales, the likes of 3AC and Alameda Research. ess risk than a bank with better returns for customers. In the midst of the 2021 bull market, the crypto industry’s second biggest player had its own plans to launch a lending program, namely Coinbase Lend. While the details of Coinbase’s Lend program are no longer publicly available, I found out that the program would work by “matching lenders of the USDC stablecoin with qualified borrowers” and that “ ”. Coinbase would guarantee the principal creditors lend out It is unclear whether Coinbase would match borrowers to lenders directly or simply create a pool out of which they could undertake lending activities. While the semantics of Coinbase’s wording is of less importance for this story, the playbook was meant to be similar to that of the largest crypto shadow banks; borrow cryptos worth billions of dollars from clients already onboarded with Coinbase and lend out in the Shadow Debt Market to worlds largest proprietary trading firms, hedge funds, and market makers. The details of Coinbase’s Lend program caught the attention of the SEC, and the US regulator reacted fiercely & aggressively by threatening to sue Coinbase if the program was launched. Coinbase Lend program was immediately scrapped, with Coinbase noting SEC’s “ ” since many other crypto shadow banks were engaging in those same lucrative borrowing & lending activities. unfair treatment The rest is now history. SEC’s decision unintentionally saved Coinbase from the same catastrophic fate that struck BlockFi, Celsius, Voyager, Gemini, and many more - the collapse of Terra/LUNA, the blow-up of 3AC, the fiasco of FTX & Alameda Research, and the ongoing contagion. In retrospect, it’s easy for crypto critics & skeptics to point fingers at crypto companies or praise regulators around the globe, but very few people understand the plumbing & infrastructure of the crypto ecosystem, with crypto shadow banking as the biggest mystery of them all. My goal is to provide insider insights into the secretive workings and shed light to strengthen our industry which will be the backbone of infrastructure for the world's growth in the coming decades.

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