An unleashed “invincible” fund – Invictus in Latin it means invincible, insurmountable, even invulnerable. The word inspired the famous eponymous poem by Englishman William Ermest Henley. And this text, which symbolized resilience to the trials of life, was Nelson Mandela’s favorite. Ironically: the Financial problems of the South African hedge fund Invictus Capital refer to the fragility of the cryptocurrency lending industry still affected by the aftershocks of the Moon’s fall and its domestic stablecoin. “I am the master of my own destiny”said the poet. But this was before $ 1 million in debt.
Invictus Capital finally down by $ 1 million
October 30 was the deadline for repaying his loan. And Invictus Capital has not honored its debt under the decentralized lending protocol TrueFi. Denominated in Binance USD and equal to1 millions dollars, ran from May 3. We remind you that the peculiarity of the TrueFi protocol is theAbsence of collateralie the borrower does not pledge anything against the funds.
Invictus Capital is linked to the company New World Holdings based in the Cayman Islands and declared in voluntary liquidation during last summer. Why such an approach? Because all the funds linked to the parent company held large quantities of FSO – the stablecoins of the Terra blockchain – which have been partially deposited on the platform Celsius network. And it all went up in smoke in a few weeks.
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Decentralized unsecured lending protocols questioned
Beyond the Earth case, which has been extensively dealt with in our columns, what is questioned here is the principle itself unpaid loan. Basing a loan on a group’s trust and financial health at present T seems like a good idea on paper. But when things go wrong, there’s really no plan B.
Furthermore, this is not not the first time that the protocol TrueFi is faced with this type of situation. Last month it was the Korean company Blockwater which was missing on a debt exceeding $ 3 million. Obviously, this loan principle, which is widespread in finance traditional, struggles to apply to the more volatile cryptocurrency market. Maple Financeanother protocol of the same type, subsequently had to modify its loan conditions 10 million slate left by Babel Finance.
TrueFi has not communicated yet on the case Invictus Capital which is not yet the subject of an official notice of default. Meanwhile, the mention of the Terra case should remind us that the cryptocurrency ecosystem is young and sometimes still immature and that the refreshing enthusiasm of its community must sometimes be channeled through the wisdom and experience of industry veterans. . “Bruised by this existence, I am standing even if wounded”wrote the author of Invictus, and it perfectly echoes the cryptographic misadventures of our fellow Rektosaurus with note … Earth (MOON).
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