The season of storms in the crypto market: will BlockFi repeat the fate of Celsius?

The CEO of decentralized finance platform BlockFi, Zach Prince, announced yesterday that histhe company will receive a $250 million credit line from the FTX cryptocurrency exchange.

According to some experts, the position of BlockFi is becoming dangerously difficult and this deal is aimed at maintaining the financial stability of the company.

Last week, BlockFi announced that it was cutting headcount by 20% and cutting spending on marketing and executive bonuses.

BlockFi works as a platform for granting or receiving loans in cryptocurrencies and stablecoins thanks to an automated system that tracks positions 24/7

Problems withdigital asset lending platformsbegan last February when it was forced to pay a huge fine of $100 million after losing a legal battle with the SEC.

Many people wonder about financialBlockFi's resilience, drawing a parallel with rival Celsius, which suspended withdrawals last week due to similar liquidity issues.

Will a loan solve the liquidity issue?

FTX Founder and CEO Sam Bankman-Fried said on Twitter that the line of credit provided will allow BlockFi to "rule the market from a position of strength."

Today we are investing $250 million in BlockFi and partnering with them to enable them to operate in the market from a position of strength. t.co/nocsdi0GLF- SBF (@SBF_FTX) June 21, 2022

Prince, in turn, wrote that "this transaction opens the door for a future partnership between the two companies." And maybe for a future takeover.

The FTX exchange in March last year openedrepresentative of FTX Europe, with an office in Switzerland, in order to expand its presence in Europe and the Middle East. According to some estimates, the growth in transaction volumes last year was 40%.

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