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1/ This is ultimately sad news and I feel for Cred's clients, partners, and team who will have to suffer through the bankruptcy process. It's also a lesson in the many misleading practices by financial "institutions" that have risen in our industry. https://www.coindesk.com/crypto-lender-cred-files-for-bankruptcy
2/ Nearly every firm advertises the use of a third party custodian. There is no way for these firms to generate interest on assets that are sitting at BitGo. These accounts are only used for the fractional reserve, or when being staged or transferred in between transactions.
3/ Anytime bitcoin needs to be moved it's vulnerable to theft from fraud or malware. Operators who continually move assets around in a lending market are constantly exposing their client's assets to risk.
4/ Insurance is thrown around a lot in the industry but we should ask ourselves seriously: have we ever seen an insurance claim pay out? Can these policies really cover the assets and events that matter? Claims of being insured should engender way less trust and more scrutiny.
5/ Firms tout their licenses but everyone is in uncharted waters when it comes to interest bearing accounts. This will be one of the biggest battlegrounds in the future as as regulators wake up to the size of these firms and the massive losses consumers are exposed to.
6/ If there's one activity that exclusively requires being a licensed bank, it's taking consumer deposits into a fungible pool, loaning them to others, while promising the consumer their money back (plus interest) upon request. Regs should protect consumers from bad promises.
7/ The only certainties in #bitcoin 
exist at the protocol level, thanks to hard cryptography and a robust network of miners & nodes. New financial institutions shouldn't cover these properties with misleading promises but instead do everything they can to expose them to clients.
exist at the protocol level, thanks to hard cryptography and a robust network of miners & nodes. New financial institutions shouldn't cover these properties with misleading promises but instead do everything they can to expose them to clients.
8/ It's why we @unchainedcap work hard to create financial services that are bitcoin native, close to the protocol, using multisig and client key participation wherever possible. More info on our approach here: https://unchained-capital.com/blog/ultimate-guide-bitcoin-loans/
