The leading decentralized coin the crypto market is set to slot in a savings account capable of accumulating interest over a fixed period.
The BlockFi company, founded by the crypto enthusiast, Mike Novogratz publicized a private beta launch of its interest-bearing accounts in January and named it the BlockFi Interest Account (BIA). Since the introduction of this intriguing feature, they have encountered over ten thousand sign-ups of which approximately 90% are retail investors.
Records have proven that there have been over $35 million deposits into BlockFi accounts since it rolled out from beta on March 5. A whopping 6.2 percent APY is distributed to account holders in their BIA as their interests, compounding monthly. Retail, corporate and institutional crypto investors have helped BlockFi amass more than $10 million in assets with large accounts drawing the average balance up to approximately $40,000.
RISKS AND REWARDS
Despite all the support and love from the mass, some are fearful of the antagonistic risk involved with the product regarding safety as a critical feature. Moreover, the company elaborates on certain factors that can diminish certain risks:
The ability to self-custody large amounts of value using BTC is one of the unique qualities of blockchain technology. Something that will always be preferred as a method of storage for many in the community.
The company admits that their product has faults, but they are trying everything possible to put it under considerable control. They also said that the interest rate imposed is alleged to be higher in times when prices are falling and lower when prices are rising because the demand for borrowing bitcoin is partially driven by market sentiment although they cannot guarantee this.
Although lending and borrowing are readily available at the educational level, the company’s goal is to improve upon that, providing financial products for cryptocurrency holders worldwide, counting those in 47 U.S. states.
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