BlockFi became the latest platform to succumb to crypto contagion, filing for Chapter 11 bankruptcy on Nov. 28.
Weeks before, after FTX had also filed for bankruptcy, BlockFi issued a statement saying it could not “operate business as usual.” At the same time, the firm implemented a pause on withdrawals to “protect our clients and their interests.”
With the spate of recent insolvencies, the crypto community is on high alert over which platform is next to call it a day. Recently, social media chatter has focused on Binance, KuCoin, and Nexo.
AFTER FTX , CELSIUS AND VOYAGER NOW BLOCKFI HAS JUST FILED FOR BANKRUPTCY
WHO DO YOU THINK IS NEXT TO GO BANKRUPT?
— GURGAVIN (@gurgavin) November 28, 2022
Crypto exchanges in the firing line
On Binance, Bitcoin Magazine analyst Dylan LeClair said he was “getting weird vibes from CZ” based on his recent actions.
In addition, LeClair further speculated that the crypto bail-out fund, led by Binance, is a public show of strength, which, when applied to a quote from Sun Tzu’s The Art of War, suggests weakness.
“Appear weak when you are strong, and strong when you are weak.”
However, the Analyst tempered these comments by saying he has no “quantitative proof of any wrongdoing,” nor is he asserting any claims by making these comments. Yet he remains skeptical.
Is anyone else getting weird vibes from CZ right now? It’s like he’s running the SBF summer playbook:
Public projection of strength and talks of “industry bail outs” while attempting to raise funds.
I’m not claiming anything, but the similarities are… odd.
— Dylan LeClair 🟠 (@DylanLeClair_) November 28, 2022
Commenting on the crypto bail-out fund in a recent interview with George Gammon of Rebel Capitalist, Swan Bitcoin CEO Cory Klippsten, who sounded the alarm on Celsius before its demise, said:
“He may be completely insolvent and it may all crash down, it’s very possible. But there is another reason to do it, which is just that if makes you five billion to spend two, then you do that. It could be a simple economic calculation.”
When pressed on his thoughts about Binance’s position, Klippsten mentioned that it appears that the firm has not gone heavy with high-risk directional bets. Like Coinbase, it seems Binance has been content with earning via “the house’s rake,” he said.
“It seems like they have not taken big directional bets and they’ve operated with more transparency, in the crypto world, assigning anyone a rating…
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