🥛BlockFi returning customer funds?

  • December 21, 2022
  • 3 Min Read

GM. This is the Milk Road, the daily newsletter that lights up crypto news like Clark Griswold's Christmas Vacation.

Here's what we got for you today: 

  • BlockFi returning customer funds?
  • Is Coinbase stock undervalued?
  • The Sandbox sold $1.66m in virtual land
  • Quick Bites + Milky Meme

BLOCKFI WANTS TO RETURN (SOME) USERS' FUNDS

24 days ago, BlockFi joined the crypto bankruptcy club. Anotha one.

The good news? It just filed a motion asking a U.S. bankruptcy court to let BlockFi resume withdrawals for certain accounts. 

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Here's everything you need to know:

  • Blockfi users could store their crypto on the platform in a Wallet account for secure storage, or an Earn account to earn interest
  • BlockFi filed the motion on Monday to let customers withdraw their Wallet holdings that have been frozen on the platform
  • This filing does not apply to customer funds in the interest-bearing accounts
  • We won’t know for sure if the bankruptcy court will green-light the plan until Jan. 9

In all, BlockFi has more than 100,000 creditors and between $1b - $10b in assets & liabilities.

What a year for BlockFi. It went from...

One of the fastest growing crypto firms → almost going bust when 3AC collapsed. 

It survived that by snagging a credit line from FTX in a $680m deal → then filed for bankruptcy when FTX went *kaboom*.

But BlockFi's move to file this motion is the smartest thing it's done all year. 

Celsius similarly said in September that it'd return $50m of the $200m in frozen assets on its platform.

A judge ordered it do so this month, but only to users that didn't sign up for its Earn program.

Hopefully, BlockFi Wallet users can see the same result soon. 

IS COINBASE STOCK UNDERVALUED?

Coinbase is the top dog when it comes to U.S. crypto exchanges. 

But even the top dogs can't escape this crypto winter...

  • A year ago, Coinbase IPO'd & hit an $86b valuation
  • Today, the stock is down 90% since & is trading at a $9b valuation

Some are pushing the "panic button" on Coinbase. And things are getting serious over at their HQ. 

The CEO has pulled out the Bear Market Fit and gone from "just call me Brian" to Mr. Armstrong. 

But the reality is, it might not be that bad for Coinbase. Let's take a look at some numbers...

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Since their last round of private funding in 2018, Coinbase has:

6x'd revenue.

5x'd users.

9x'd assets on the platform.

Not too shabby if you ask the Milk Man.

TODAY'S EDITION IS BROUGHT TO YOU BY FUTURE 

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SANDBOX SOLD $1.66M IN VIRTUAL LAND

The metaverse. It's the buzzword of the year.

Yet, no one knows what or where it is. 

But that hasn't stopped Sandbox from selling $1.66m in virtual land plots over the past few weeks. 

Here’s how it works:

  • Sandbox sells a fixed supply of virtual land
  • Each plot is tied to an NFT, giving owners digital ownership to that lanD
  • Big brands have been buying virtual land to build cool experiences for consumers

The fact that virtual land is selling means people are still hoping it’ll pay off in the future.

Who knows what that'll actually look like though...

QUICK BITES

Core Scientific, one of the largest Bitcoin miners in the world, has filed for Chapter 11 bankruptcy. *sigh* the Chapter 11 list just gets longer & longer...

Celsius (bankrupt lender) has 30+ potential bidders for its various assets. A judge also granted a motion to resume withdrawals for a few Celsius users. A Christmas miracle?

Samuel Bankman-Fried has signed his extradition papers back to the U.S. He's supposed to touchdown back in the States later today. 

Visa dropped a proposal for an automatic payments system using Ethereum smart contracts.

MILKY MEME

That's a wrap for today. Stay thirsty & see ya tomorrow! If you want more, be sure to follow our Twitter (@MilkRoadDaily)

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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    Milk ManWriter

    This dashing dairy expert is not just your average milkman. He's a tri-athlete, a former classmate of Satoshi Nakamoto, and a crypto enthusiast who loves nothing more than delivering the freshest news and insights straight to your inbox.