I'm still a "customer" even though I withdrew all my crypto from these folks in mid 2022 before all the drama started.
Yesterday, they sent out this hilarious email as a "new product" announcement:
NEW! Low Interest Loans - Bitcoin backed loans with interest rates as low as 3.9% APR.\*
Do you have more bitcoin available for collateral in exchange for a lower interest rate? Then this product is perfect for you. Coming soon, Ledn will launch a beta of our new Low Interest Loans. Our in-platform calculator can help you understand what collateral is required for varying interest rates. This is a beta, so increased functionality will roll out over time and we welcome your feedback on how to improve and evolve the product. Low Interest Loans are available based on jurisdiction and loan eligibility. We may also need to start a waitlist depending on demand as capacity will be limited to start.
Don’t worry - our typical bitcoin-backed loans at a 50% LTV are still available as is!
I think this deserves the "comedy" flair even if they seem quite earnest.
Q: How many people, having seen this company lock withdrawals and OTHER companies (ahem BlockFi) lose their staked crypto, are willing to stake with them crypto just to borrow cash at this low a rate with a non-zero possibility of 2x the value in BTC disappearing overnight?
I understand the overall usecase for borrowing against crypto (need fiat with a non-taxable event b/c you have such a low cost basis) but juicing up your collateral seems pretty nuts to me.
-wj
No comments:
Post a Comment