Friday, December 9, 2022

BlockFi Valuation Drops To $1B In Latest Funding Round: Analysis

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The BlockFi valuation drops to $1 billion in the latest funding round as it last raised $350 million in March last year so let’s read more today in our latest cryptocurrency news.

Crypto lender BlockFi valuation drops and will close a new funding round at a lower valuation than the preivous raises. The round will value the company at $1 billion as per the reports which cite sources with knowledge of the matter. The funding known as a down round occurs when the company seeks to raise more capital and discovers that the valuation is lower than the preivous financing.

Blockfi raised $350 million at a larger valuation of $3 billion, it was set to raise another $500 million and value it at around $5 billion while also making known plans to go public. The lower valuation points to the more challenging atmosphere in the industry at present as well as regulatory uncertainty around companies like BlockfFi, that offer high-interest payouts against the crypto holdings.

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The company agreed to pay $100 million in penalties to the US SEC and a few state regulators as a part of the settlement in the investigation into whether the high yield lending product was actually a securities offering.

As recently reported, Blockfi co-founder expects FOMO to be the main factor that will drive digital asset adoption in the next year and noted that the two other elements will be the talent pivoting from traditional finance to the crypto industry as well as more regulatory clarity. In a recent interview with Yahoo Finance, Flori Marquez a who is also a Senior Vice President of Operations said that the digital asset industry has already grown to such a level that most people in the USA will experience the FOMO in 2022 and it will become the major factor for a lot of investors to enter the market for the first time and boost crypto adoption.

Also, The New Jersey-based crypto financial institution BlockFi confirmed the data breach in its third-party vendor Hubspot. Its warning about the breach aims to deter the intentions of some bad actors in using the data for fraudulent activities. According to the announcement, the hackers gained access to BlockFi’s client data and they were stored on Hubspot.

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