Several BAYC and CryptoPunks collectors who put up their tokens as collateral backing for Ethereum loans have been unable to settle their dues. Crypto analysts believe this could mark the onset of the first major liquidation crisis in the NFT industry. BendDAO Loans and Possible Risks Rumors of a liquidation spiral began earlier this week following a post about NFT lending platform BendDAO. BendDAO is a web3 protocol that allows users to take out loans in Ethereum using their non-fungible…
After a long month of generous bailouts, crypto exchange FTX now eyes fresh funding at a flat valuation.
As reported by Bloomberg, individuals familiar the matter say FTX and FTX US are both fundraising. They each chose to remain anonymous as they aren’t authorized to discuss the matter.
- The firm is targeting a round that is roughly equal to its $32 billion valuation from January, following its $400 million raise in January. FTX US also raised $400 million at the time, bringing its valuation to about $8 billion.
- FTX and its CEO Sam Bankman-Fried (SBF) effectively became a lender of last resort for struggling crypto firms in June.
- The exchange provided about $1 billion to companies BlockFi and Voyager but was unable to save the latter.
- In a conversation with Bloomberg on Monday, SBF said that his company was ok doing bailout deals that were “moderately bad,” or didn’t necessarily have a good ROI.
- However, his firm refused bailout deals with companies that didn’t seem transparent about the holes in their balance sheets.