BlockFi Crypto Lending Platform Announces a Change to its Existing Interest Rate Scheme
- BlockFi’s services were launched in the first week of March — a time when the lending firm was offering interest rates of 6% (APY) on both BTC and ETH
- Within a span of just 18 days, BlockFi announced its decision to lower the above-mentioned interest rates.
Crypto asset management firm BlockFi recently released a statement saying that they were going to be implementing a new interest rate scheme w.e.f May 21. As a result of this change, account owners with bitcoin holdings of 25 BTC or more will receive a 0.15% increase on their existing rate setup. However, people with ETH balances laying between 25 and 75 ETH will see their interest rates “drop from 6.2% to 3.25%”.
More On The Matter
As per a spokesperson for BlockFi, even though the lending environment around BTC has grown massively over the years, the same cannot be said for other premier alt-assets such as ETH, BCH, etc. To elaborate further on the matter, we can see that Ether only constitutes 3% of Genesis Capital’s lending portfolio for Q1 2019.
In response to the changing market conditions, BlockFi’s executive brass has decided to implement a corresponding rate adjustment scheme. However, it should be pointed out that the incurred rates will remain unchanged for owners possessing 0.5 BTC to 25 BTC. Similarly, people with 100 ETH or more in their accounts will continue to earn their regular 0.2% APY.
Other Key Details Worth Pointing Out
- Over the course of the past few months, BlockFi has been facing some criticism in regards to its existing T&Cs.
- As per their current policy setup, BlockFi has the power to change the interest rate on all of its offerings at the end of each month (at its sole discretion).
A number of industry commentators such as David Silver, have called out BlockFi on its shady operational practices. For example, during a recent interview, Silver was quoted as saying:
“A superficial review of their splash page and their terms and conditions shows that their advertising is not necessarily what they’re guaranteeing”