HomeBlockchainBlockFi app review: what is it?

BlockFi app review: what is it?

The following is a review of BlockFi, which is an app that allows users to earn interest every month on deposited cryptocurrencies

To take advantage of this service, users need a BlockFi Interest Account (BIA), which allows them to deposit BTC, ETH, LTC, USDC, GUSD and PAX, and collect compound interest in cryptocurrency. 

The platform also allows the purchase in fiat currency of supported stablecoins, i.e. USDC, GUSD and PAX, which can then be exchanged within the app in BTC, ETH, and LTC. 

Simply by holding Bitcoin, Ether, Litecoin, USDC and GUSD on the platform it is possible to earn compound interest, paid in turn in BTC, ETH, LTC, USDC and GUSD, every month. At this time, for example, the annual lending interest rate is up to 8.6%, and since it is variable, it will fluctuate over time. 

To raise the security level of token storage, BlockFi uses the well-known American exchange Gemini as its main wallet, and enjoys the institutional support of investors such as Valar, Galaxy Digital, Susquehanna and Coinbase.

At the same time, the platform also allows users to obtain loans by collateralizing cryptocurrencies, in order to obtain liquidity without having to sell them. It is possible to obtain loans up to half the USD value of the cryptocurrency left as collateral, with same-day disbursement via bank transfer or stablecoin.

BlockFi thus functions as a platform for lending or obtaining cryptocurrency and stablecoin loans, thanks to an automated system that monitors positions 24/7. 

This is a CeFi service, in some ways very similar to analogous DeFi services, but which requires customers to grant custody of the assets to the platform itself. 

Technically BlockFi is a crypto bank founded in 2017 and based in New York, so it is a centralized institution that acts as an intermediary between creditors and debtors. 

In 2018 the crypto startup raised $4 million through Fidelity from investors such as Akuna Capital, Susquehanna Government Products, LLLP, CMT Digital, Recruit Strategic Partners, Galaxy Digital Ventures, Morgan Creek Digital, and Devonshire Investors, a private equity group affiliated with the parent company of Fidelity Investments. 

BIA itself was officially launched by Fidelity in March 2019, initially with an annual interest rate of 6.2%. 

At that time a minimum deposit of 1 BTC or 25 ETH was required, but this limit was later removed. 

In February, the company announced that it had completed a new $30 million fundraiser, this time involving Morgan Creek Digital, PJC, Akuna Capital, CMT Digital, Avon Ventures, Castle Island Ventures, Purple Arch Ventures, Kenetic Capital, Winklevoss Capital, Arrington XRP Capital and HashKey Capital. 

In fact, the company aims to offer a true mobile banking service, including the lending system and a new premium system. 

To date, the company has already managed more than $650 million deposited on its platform, with revenue growth of more than 20 times in 2019. 

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".