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Scott Shuey · · 11 min readA who’s who of projects facing frostbite in the crypto winter (Updated)
There is a difference between struggling financially and being in deep trouble. This list is about the latter. We’ve created three categories: Under Pressure, Underwater, and Six Feet Under.
Under Pressure is for protocols and cryptocurrencies that are struggling but surviving. Underwater means there is significant concern about liquidity and insolvency. The final category is for those companies and projects that aren’t expected to come back – at least, not without a miracle.
Under Pressure
Image credit: Timmy Loen
CoinFlex
CoinFlex is allowing customers to withdraw 10% of their account balances as of July 15. The exchange previoulsy halted withdrawals on June 23.
“We will be making 10% of user balances available for withdrawal with the exception of flexUSD , which cannot be withdrawn until further notice,” according to a blog post from CoinFlex co-founders Sudhu Arumugam and Mark Lamb.
The announcement also comes less than a week after Arumugam posted that CoinFlex was trying to recover $84 million from “an individual” through arbitration proceedings at the Hong Kong International Arbitration Centre. Lamb tweeted that the individual was Roger Ver.
Arumugam said that Ver – also known as Bitcoin Jesus – had failed to pay or meet demands for increased collateral.
Last updated on July 18, 2022
BlockFi
The US-based asset manager received a bailout from crypto exchange FTX on July 2. Under the deal, BlockFi gets a US$400 million line of credit while FTX has the option to acquire the asset manager for US$240 million.
Despite the bailout, rumors persisted. On July 11, BlockFi CEO Zac Prince tweeted that “it’s time to stop putting @BlockFi in the same bucket / sentence as Voyager and Celsius. Two months ago we looked the ‘same’. They shut down and have impending losses for their clients.”
Prince said that BlockFi is fully functional across all products.
BlockFi was forced to lay off 20% of its employees and had also reportedly parted ways with Jason Wilkinson, who headed its US trading desk.
Underwater
Six Feet Under
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