(GT - Gadget Tendency) - The consequences of the collapse of the FTX crypto exchange will affect the lives of many people for a long time to come.
According to Bloomberg, the problem affected not only users and miners, but also creditors. As it turned out, the miners took out loans for a total of $4 billion to purchase equipment. This happened at a time when the profitability of mining “digital gold” was 90%.
However, now that the payback has fallen sharply, many refuse to pay their loans and send hundreds of thousands of devices to lenders that served as collateral.
Among the largest lenders were such giants as New York Digital Investment Group, Celsius Network, BlockFi Inc., Galaxy Digital and Foundry, a division of Digital Currency Group. At the same time, according to experts, even this may not be enough.
According to Matthew Kimmell, a digital asset analyst at crypto investment company CoinShares, banks and credit organizations did not always conduct a comprehensive analysis of whether a miner would be able to repay a loan in the event of force majeure.
The lenders themselves will now have to look for opportunities to sell the equipment, and it will certainly be offered at large discounts, since its technical condition after mining is unlikely to be very good.
By Jeff Tucker
December 4, 2022
