Topic: Crypto Lender Abra Has Been Insolvent for Months - page 2. (Read 438 times)

Another scheme is blown into air, I have learnt about such platforms in 2021 and they were offering huge interests for the ones who would lock their crypto-currencies on their platform. The same model was followed by many exchanges and is still active on some exchanges. Some of those exchanges have lost all of their money during the bear market and crash of Terra Luna, and after that the platforms were just fooling the customers by showing them numbers only which had no intrinsic value in real world.

With the collapse of Terra Luna a lot of those exchanges have lost a good amount of money and they weren't able to recover the losses. Many of those exchanges were giving huge returns to the ones who were locking and staking their Luna on those platforms. They were confident that with Luna they will help them earn huge returns and the customers were falling into such traps because of their greediness. They were stacking all of their coins on such platforms and were thinking that they will be rich in a year and so on.

Those sites kept all of their users in dark when the market crashed when UST was de-pegged and Terra Luna went to $0 in few days. They all were in shock because none of them were expecting something like that to happen, and after the liquidation they did everything to hide their bankruptcy from the users. I don't think that someone who knows economics very well would ever fall into such schemes. The huge returns on stacking are always fake and they are Ponzi type of schemes to loot money from the wallets of the users to their own custodial wallets. I think promoting awareness about such sites is an important thing so that new users might not fall into such traps.

I have heard this name for the first time in my life despite being in this community (active). So maybe not a big deal but it is because it's crypto, isn't it?
Everything in Crypto is BIG. So a lender called Abra getting insolvent in a bear market, where the biggest of the biggest fall is a big news.

And people wonder why the government wants to come in and regulate.
How many people are going to loose everything because they were stupid and gave their money away to places like this.

It's not a new thing, businesses like this have been around scamming forever. And then as they get bigger and bigger and grandma and grandpa wind up loosing all their money the government comes in and tries to control them. So they move on to the next scam.



People are greedy and stupid, and we can't fix that. Kind of like the people who invested in gold back in 2012 and can't figure out why a decade later it's worth less then they paid for it....

-Dave

Another one added to list of centralized exchanges and lending services to have bitten the dust in the last few months, and there will surely be more before the year ends, what will not change is that people would still have their money in these services anytime one of them collapses.

In looking for APY and "convenience", people give away the custody of their funds to these platforms that can go insolvent or collapse at anytime, all it takes is for one of their investments to fail or if the institutions they lent money to goes bankrupt, which will result in a domino effect. It is now like a cliche, but self custody solves all of these, "not your keys, not your coins".

What I noticed is that people should be aware of crypto lending platforms,. The bull market is good for them but most of them were not able to survive during bear market. Crypto are not like fiat because they are more volatile, especially the altcoins which are very volatile.

There are some platforms that can give APY return, like the exchanges, but they have one disadvantage of not your key not your coin. It is not worth going for, to invest on centralized online places.

The only one that I have considered better are the staking using noncustodial wallets, not the ones like decentralized exchanges which can be hacked. Such exploits are common these days than how custodial exchanges are hacked. But staking directly using wallet is good if gotten rightly and staking at the right time. The reward is daily, but bear market can result to losses.

If someone can be patient enough, he can go for bitcoin which is safer. Bitcoin requires speculation, it is not what people should just go into, it requires studying about it and knowing the right time to invest and hold your bitcoin on a noncustodial wallet instead which can even be cold wallet.

I too will tell people to be careful of those custodial services.

When I am talking to some of my friends, they are novice and they do not know much about safety. There are some I introduced to this forum which later found out that what they were doing before was wrong. Ignorance is the cause of many people's mistakes. If not because of the lessons I have learnt on this forum, I may just be like them too.

Change the word "Abra" to "Celsius" and that entire story could have been copy and pasted from a year ago. I am 100% certain we could post the same story this time next year with a dozen other platform's names substituted in instead.

It seems there is no shortage of people in this world who flat out refuse to learn any lessons from the past or pay any attention whatsoever to what is going on around them.

I have ran out of sympathy for people who still have their funds on these centralized scams exchanges and earning platforms. Absolute insanity by this point.

There are still many custodial institutions still running and users unaware of the danger ahead, the recent events happening should teach them a lesson, you can imagine the rate exchange users are dumping them for a decentralized means of having their investment, we should be expecting more to have their bubbles bursted soon.


Most of them have no difference from a ponzi scheme because they share almost sae risk together whereby one can completely loose his investment with them, we get notified of some when they goes down while some remain unknown because we cannot obviously know all this platforms at once.

Crypto Lender Abra Has Been Insolvent for Months, State Regulators Say
https://www.coindesk.com/policy/2023/06/15/crypto-lender-abra-has-been-insolvent-for-months-state-regulators-say/

TLDR
It has funds on paper only, as most of its funds are in bankrupt businesses, like Genesis and 3AC.

Filling here:
https://www.ssb.texas.gov/sites/default/files/2023-06/ENF_23_CDO_1873_NOH_Actions.pdf

I've just opened a topic about another lending platform being silent in SK, Haru, so what a surprise to have another one that was offering,

Again, probably a little too late to remind for a thousand times the thing about not your keys not your coins and to stop chasing huge returns trying to get rich doing nothing. The only thing I'm actually curious about is if we will have any of those "earning and earning" platforms alive by the end of the year!