Goldfinch Crypto Lending Protocol Collapses; GFI Token Plummets 99.8% to $0.07

GFI0.42%
According to Protos, Goldfinch, a decentralized lending protocol backed by a16z targeting unbanked populations in Africa, faces a critical crisis. On-chain data shows that of 8 borrowers, 2 have formally defaulted and 6 entered debt restructuring, with cumulative losses exceeding $18 million. The protocol's native token GFI has crashed from its January 2022 peak of $32.94 to below $0.07, a 99.8% decline. Project market capitalization has collapsed from $390 million to under $6 million. Despite lending over $100 million across 18 countries, Goldfinch suffered from inadequate off-chain credit verification, leading to widespread fund misappropriation and repayment defaults.
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