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Goldfinch, backed by a16z, Faces Tens of Millions of Dollars in Loan Defaults; GFI Token Plummets 99.8%
Svmuu News: A contributor to Goldfinch, an African crypto lending project, claims that the project has seen tens of millions of dollars in loan defaults and has lost more than $300 million in market value from its peak. The project had previously raised $25 million in a funding round led by Andreessen Horowitz (a16z), and the price of its token, GFI, has fallen 99.8% from its all-time high of $32.94 on January 11, 2022, to below $0.07. One depositor stated that, out of eight borrowers, two have defaulted, six are in the restructuring phase, and more than $50 million in funds are being mismanaged. In addition, loans including a $5 million loan to Tugende Kenya, a $20 million loan to Stratos, and a $10.15 million loan to Lend East have all experienced varying degrees of default or impairment, resulting in cumulative losses exceeding $18 million. (protos)
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