New slap for the D.eFi ? The crypto lending platform TrueFi (TRU) he must manage the financial difficulties of one of his debtors, Blockwater. He took out a multi-million dollar loan in Binance USD (BUSD).
Crypto Loans: TrueFi Facing an Overdue Blockwater
In a ticket blog post on October 6, TrueFi announced the issue ofa notice of default against the South Korean investment firm Blockwater. The latter missed a deadline for its BUSD loan of approximately $ 3.4 million.
TrueFi is a lending platform that enables crypto companies to take unsecured credit. Platform users can lend to portfolios managed by TrueFi DAO. Borrowers and loans are analyzed. They need to get the approval of the TRU token stakers, the platform’s native cryptocurrency.
Blockwater would have reimbursed it by now $ 645.405 in eight payments on this credit. However, it still has to pay $ 2,967,458 at the time of default.
TrueFi had already negotiated out of court with Blockwater executives. Apparently the borrower encounters some difficulties in honoring their commitments for several months. Discussions focused in particular on an increase in the borrowing rate, accompanied by an extension of the maturity.
The initial duration of the loan was in fact 90 days. The closure was therefore scheduled for the first week of August this year. TrueFi has granted an extension, postponed to October, with a weekly payment plan.
Non-confrontational judicial process and insolvency without major consequences?
Yet another default seems to have changed the situation. The credit platform would finally have decided to eventually resort to an administrative procedure in accordance with the law court supervision. It evokes the complexity of Blockwater’s sudden insolvency, to justify the merits of such an approach.
Although TrueFi having lifted this procedure, the company would have continued to dialogue with Blockwater to maximize debt recovery. The views of TRU token holders would be in demand, should TrueFi DAO take specific steps in this context.
Like most of the crisis press releases that have been issued by other cryptocurrency companies during these bear markets, the post TrueFi obviously intends to be reassuring by minimizing the impact of this default on its financial situation.
This insolvency, temporary or permanent, of Blockwater would not prejudice ” lenders from TrueFi’s USDC, TUSD, USDT stablecoin loan pools “The capital market portfolios of the platform should also not fear jolts following this event.
the bear market will have revealed the weakness of some cryptocurrency lending platforms. Does TrueFi have a strong enough safety net to deal with this kind of situation? Or the cryptosphere is about to do it to witness another Celsius-like scenario, which puts its customers through an ordeal ?
Take advantage of the opportunities to buy low-cost cryptocurrencies that the market offers us! And to protect your assets, invest in a Ledger key, a world leader in personal wallets. To preserve your purchasing power, the shipping costs are a gift (commercial link).