I think you probably mean BlockFi (or does Blockfolio do lending now too?). Anyway, “not your keys, not your coins” is a pretty clear answer. You are receiving interest as compensation for assuming risk. So investors should do their best to understand what comprises the risk, then decide if the compensation is adequate.
Just some risks to consider:
custodial risk (business loses coins by hack, mistake, etc)
business risk (business closes due to profitability or regulatory issues for example)
lending risk (loans are defaulted, resulting in loses)
Yep, I corrected myself in another post, I meant blockfi.
Custodial risk: it’s secured by the Gemini trust which has custodial solutions. I’m unsure if there is insurance against that or how it works though.
Business risk: anything is possible by NY regulations are the toughest and often the dumbest but I’m not sure if there is more red tape around crypto then NY state.
Just looking around more so for the future but of course if we have 250k bitcoin, putting just one or two coins up for interest payments is big money so you want it to be safe.
I think you mean BlockFi and yes I know people using it and they love it. Nothing is FDIC insured but I was pointed to a podcast called “the investors podcast” (it was a more recent episode) that interviewed the founder of BlockFi and it was impressive and reassuring. I would definitely recommend listening to that podcast episode.
One of my biggest concerns would be how fast they will have to grow really. Like if something goes wrong and they are so swamped that you can’t get support for months when you need the money for example. We saw situations like that with exchanges during previous bull runs.
My bad, I meant blockfi. I don’t know if it was you or someone else answered my Twitter question but I couldn’t seem to figure out the podcast. I’ve see the co-founder Flori Marquez speak a few times and she is very impressive. I’ll have to dive a little deeper.
It’s a great point and something I heard the confounder speak to recently. While I don’t have all the answers to the great questions you posed, I have talked to many people about their experience customer service wise and have only heard good. I know they put a very minor temp stop to new accounts on sign ups Bc of demand but didn’t hear it effecting current business.
I used Nexo when I had to come up with some closing costs for my house, but didn’t want to liquidate my ETH as it was ramping up. As soon as I pay it off, I’ll be taking my coins back out into something more secure. I haven’t had any concerns, though.
Nexo is a Bulgarian company, but I highly do not recommend them. There were scandals of manipulation by them with the price of certain tokens. Sofia is full of their ads:
The peer reviewed research, the fact that they, like MAID, take their time to get it right and put out a good product. They will be able to do everything ETH does, except better, faster, and cheaper. I like the CEO and his constant communication. I’m not a real techy guy, but it certainly seems to me to be far superior to Ethereum. I like that you don’t have to lock up your ADA for a certain amount of time when staking, like we will for ETH. It just seems very professionally and scientifically developed.
I like that there is such a huge following for Cardano that they are a top 5-ish coin despite the fact that they have not yet released the full product. This tells me that there will be a lot of interest in development once the smart contracts do begin. I’m looking forward to the new use cases that come out of it.
I am the same I like it for all of these same reasons.
I see an opportunity here for SAFE with Cardano staking. Essentially we can setup Cardano staking pools up via the SAFE network.
Currently many of the pools are going the btc mining route and building giant computer systems or they’re delegating the task to Amazon servers.
Many of the comments I am reading dont like the fact that both of these methods are centralised.
Should MaidSafe get their stuff together in time it would allow SAFE to be used for Cardano staking I’d assume pending the economics of it all making sense.
I bought all my MAID and ADA around the same time the middle of last year, and haven’t sold any of either. Years ago, when I first bought both, I had to sell due to some financial hardships, so I had to start over. I figured I could not miss the great prices when the pandemic hit the market; and I was in a better place financially to do so. It all worked out pretty well, as my cost basis is much lower than when I first bought.
That is interesting. I’m not savvy enough to know which chains will thrive due to the Safe Network, and which may be rendered obsolete. However, the expertise behind Cardano leads me to believe that they will figure out how to work with it.
Interesting. I heard something similar on a podcast recently, but it didn’t go into how they would do that - and which industry in particular, assuming several firms don’t form a huge cartel, which I guess they might. I only follow this stuff from a distance so may have missed a key point but it sounds like a pretty high-risk strategy.
