Tuesday, January 18, 2022

Tried searching for Algo-backed fiat loans, but couldn’t find any. Do they exist, and if not, why?

So there are currently companies like Nexo, Celsius, and BlockFi that offer crypto-backed fiat loans on “mainstream” cryptos like Bitcoin, ethereum, link, dot, etc. But when I tried searching for companies that would accept Algo as collateral, I came up empty-handed. AlgoFi does offer Algo-backed loans, but you’re limited to USDC, which you would still need to sell on an exchange and would thus create a taxable event. Is there a reason that Algo hasn’t been accepted as an acceptable collateral crypto for fiat loans?


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