Figured I share a couple of observations regarding current state of crypto lenders:

1. Bear market: CeFi wasn't built for crypto winter

2. Near competitor liquidation/insolvency: this is the contagion effect. We have seen this w/ Celsius, 3AC, Bancor, Vauld, Voyager.

3. Increase in customer complaints: this is all over Reddit w/ lending platform customers complaining that they cant access their accounts, takes days to get a response, changing terms and conditions

4. Bank run: this includes indications others are pulling their token off the lending platform, you don't want to be the one holding the bag

5. Questionable business practices: a lot has come out lately about corruption regarding Celsius leaders and I've been seeing the same about Nexo leaders, including a co-founder taking off with $61M.

This is something I feel worth sharing and I'm curious to hear your opinions as well. Please keep it civil and constructive, if possible.