Revolving credit http://fimendurance.com/ Tue, 27 Sep 2022 05:55:26 +0000 en-US hourly 1 https://wordpress.org/?v=5.9 https://fimendurance.com/wp-content/uploads/2021/10/icon-5-120x120.png Revolving credit http://fimendurance.com/ 32 32 FTX completes final offer to acquire the assets of Voyager Digital https://fimendurance.com/ftx-completes-final-offer-to-acquire-the-assets-of-voyager-digital/ Tue, 27 Sep 2022 03:42:46 +0000 https://fimendurance.com/ftx-completes-final-offer-to-acquire-the-assets-of-voyager-digital/ According to the latest development, crypto exchange FTX US has finally outbid other players to win the assets of bankrupt crypto lender Voyager Digital. FTX was in a tough race with crypto exchange Binance as the latter took the lead last week. According to Voyager Digital’s Monday, September 26 release, the deal was valued at […]]]>

According to the latest development, crypto exchange FTX US has finally outbid other players to win the assets of bankrupt crypto lender Voyager Digital. FTX was in a tough race with crypto exchange Binance as the latter took the lead last week.

According to Voyager Digital’s Monday, September 26 release, the deal was valued at approximately $1.4 billion. This includes $1.3 billion in value of all cryptocurrencies currently with Voyager Digital as well as $110 million in “additional consideration”.

At the end of the bankruptcy process, Voyager Digital customers will be able to transfer these assets to the FTX US platform. The struggling crypto lender said it will present the purchase agreement to court next month, on October 19.

As the crypto market faces huge turbulence this year, FTX chief Sam Bannkman-Fried has acquired some good companies in the market. According to the sources, FTX is looking to raise an additional $1 billion in funds. However, FTX is yet to confirm the same.

The fall of Voyager Digital

By the end of March 2022, Voyager Digital had a total of 3.5 million users and nearly 1.19 million funded accounts. The trouble started with the collapse of the Terra ecosystem which led to a huge downfall of the biggest hedge fund Three Arrows Capital. Voyager Digital’s exposure to 3AC along with large withdrawals led to the crypto lender’s downfall.

In July, Voyager Digital finally filed for Chapter 11 bankruptcy. Prior to that, Alameda Research – an FTX-affiliated trading house – attempted to acquire Voyager with a revolving line of credit, but the effort failed.

Later, FTX and Alameda Research also made a joint bid for Voyager, however, the crypto lender called it a “low-ball” effect. Earlier in September, Alameda promised to return $200 million worth of BTC and Ether that they borrowed from Voyager.

Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrency. He is continually in a learning process and motivates himself by sharing his acquired knowledge. In his spare time, he reads thrillers and occasionally explores his cooking skills.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

]]>
This month in history: the first credit card https://fimendurance.com/this-month-in-history-the-first-credit-card/ Sun, 25 Sep 2022 09:07:51 +0000 https://fimendurance.com/this-month-in-history-the-first-credit-card/ Front and back of a sample of the card used in the 1958 Fresno Drop. National Numismatic Collection, National Museum of American History, Smithsonian Institution | CC0 What: Bank of America launches its first credit cardWhen: September 18, 1958Where: Fresno, California While the first half of the 20th century saw consumers use payment cards, like […]]]>

Front and back of a sample of the card used in the 1958 Fresno Drop. National Numismatic Collection, National Museum of American History, Smithsonian Institution | CC0

What: Bank of America launches its first credit card
When: September 18, 1958
Where: Fresno, California

While the first half of the 20th century saw consumers use payment cards, like Diners Club, to make purchases and later pay off balances, Bank of America was the first bank to launch a high-volume card program. scale offering consumers a revolving line of credit.

BankAmericard launched what became known as the “Fresno Drop”, a mass mailing of plastic credit cards to 60,000 residents of Fresno, California. Residents received no notices about the cards, but more than 300 merchants had agreed to accept BankAmericard before the cut. Mass mailing of credit cards would later be banned in the United States

While encountering fraud, consumers who decided not to pay and other problems as the cards were distributed to more Californians, Bank of America began to profit from credit cards within three years. BankAmericard will become Visa in the 1970s.


“Here began the trickle of what we now call ‘financial products’, largely aimed at the middle class, which would, by the 1980s, become an avalanche. This was the first glimpse of the gradual but enormous changes in the habits and financial assumptions of the middle class. … Although this transformation will only become apparent in 20 years, and although it continues to this day, it was then that the American middle class began to change the way they think and manage their money .
—Joseph Nocera in a 1994 Washington Post article adapted from his book “A Piece of the Action: How the Middle Class Joined the Money Class.”


To celebrate its 150th anniversary, Banker & Tradesman is highlighting important moments in the history of Massachusetts’ real estate and banking industries. To suggest a topic, send an e-mail editorial@thewarrengroup.com.

]]>
One Thing You Can’t Afford Anymore: Having Bad Credit https://fimendurance.com/one-thing-you-cant-afford-anymore-having-bad-credit/ Sun, 25 Sep 2022 01:00:00 +0000 https://fimendurance.com/one-thing-you-cant-afford-anymore-having-bad-credit/ If you think inflation feels bad at the grocery store or at the gas pump, consider the pain it inflicts on a credit card statement, where higher prices don’t just impact the cost of the items purchased, but also on the financing to pay for them. And according to several recent studies, a growing number […]]]>

If you think inflation feels bad at the grocery store or at the gas pump, consider the pain it inflicts on a credit card statement, where higher prices don’t just impact the cost of the items purchased, but also on the financing to pay for them.

And according to several recent studies, a growing number of consumers are feeling this discomfort from the bills they see each month, as credit card balances approach record highs and look certain to surpass previous highs and eclipse 1 trillion dollars for the first time.

This is proof that many Americans engage in poor financial behavior.

Yes, I would like to believe that regular readers of a column like mine are financially responsible and not oblivious to debt; I hope what I’m about to say sounds mostly like a sermon given to the choir.

But as times change, strategies with credit change too. Behaviors that were acceptable and responsible a short time ago are no longer as healthy or appropriate today, a situation that will only get worse until interest rate hikes stop and inflation step back.

Meanwhile, the numbers suggest that many Americans — and the country as a whole — are headed for a credit card debt crisis.

Just last year, few people would have predicted such a thing.

As the pandemic took hold in 2020, Americans cut spending and focused on debt reduction; National credit card debt fell from a record $927 billion in the fourth quarter of 2019 to $770 billion in the first quarter of 2021, according to consumer debt data from the Federal Reserve. Bank of New York.

Since then, however, Americans have added more than $100 billion to their revolving credit balances, which now total some $887 billion.

With inflation and interest rates on the rise – along with other factors that are struggling for many consumers – it’s a lock that the old record will soon be broken, likely by the end of the year. ‘year.

At the same time, the rates themselves break another record, for the highest average credit card rate nationwide.

Bankrate.com pegs average credit card rates at over 18%, the highest since 1996.

This barely explains the Federal Reserve’s latest interest rate hike, which card issuers hadn’t fully digested before the central bank raised interest rates by 0.75 percentage points. Wednesday.

In addition, the Fed has signaled that it will likely raise rates again – by a total of 1.25% – before the end of the year.

Ouch.

LendingTree, which in 2019 began tracking rates on 200 of the nation’s most popular credit cards (issued by over 50 lenders) recently pegged the average credit card interest rate at around 21.6%, a record.

And several studies show that the average interest rate on new cards issued today is north of 21%.

With further increases already planned, rates of 25% will not be outliers by the time New Year’s Day rolls around.

This should be enough to dissuade consumers from going into debt, but it is not.

LendingTree analysts calculated the national average card debt among people with outstanding balances to be $6,569. Meanwhile, a CreditCards.com study released this week showed that nearly two-thirds of credit card debtors have had a balance for at least a year.

If you’re constantly faced with credit card bills – never resetting balances after big purchases or just regular monthly expenses – then carrying credit card debt isn’t a temporary way to getting by is an ongoing part of your financial strategy.

Good luck with this, as high prices and higher rates will make it harder to repay in the future, adding years to the time it takes to zero a bill by paying at or near minimum.

Worse still, although you can try to blame the situation on the economy and rising prices, most credit card debt problems are the fault of the borrower.

Yeah, the dollars aren’t going as far now as they were a year ago. But this doesn’t just apply to the goods you buy, it also affects the interest you owe. If you have $5,000 in credit card debt and are making monthly payments of $500 while trying to reduce the balance, less of your money is now going to the principal (unless you have a fixed rate card).

Your behavior may not have changed, but your payment date is further away and your efforts have become less effective.

The good news, if there is any, is that so far consumers seem to be paying their bills. Delinquency levels are historically low, and the debt-to-income ratio is not exceptionally high.

That could change overnight, however, as the cumulative effects of more expensive everyday life continue to knock on our doors.

With this in mind, consumers need to fine-tune their spending and eliminate all high-interest debt.

With so few investment products currently promising double-digit returns, anyone with debt to repay should consider “investing” in repayment as a good return on their money.

Making progress is tough with inflation north of 8%, so write down any debts, track your spending, and see where you can cut ledger expenses to improve the outlook for what you owe.

Trade-offs can be difficult, but ask yourself if debt is causing more pain – monetary or emotional – than spending cuts; if so, tackle the debt.

Consider refinancing where possible. There are still low rate balance transfer offers available; consider moving credit card balances, but beware of transfer fees and the costs that will arise if you can’t pay off the debt before the interest rate expires and the normal rate comes in to kick your ass buttocks.

Consider the timing of major purchases and evaluate financing options before heading to the store or dealership. Monitor your credit rating; the more progress you can make to improve it now, the more it can help you if you need to seek a refinance deal down the road.

]]>
DAO Tribe Votes to Reimburse $80M Rari Hack Victims https://fimendurance.com/dao-tribe-votes-to-reimburse-80m-rari-hack-victims/ Thu, 22 Sep 2022 05:00:26 +0000 https://fimendurance.com/dao-tribe-votes-to-reimburse-80m-rari-hack-victims/ After months of uncertainty, the DAO Tribe has voted to repay affected users of the exploit $80 million from the liquidity pools of decentralized finance (DeFi) platform Rari Capital. After several rounds of voting and governance proposals, Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, made the decision in […]]]>

After months of uncertainty, the DAO Tribe has voted to repay affected users of the exploit $80 million from the liquidity pools of decentralized finance (DeFi) platform Rari Capital.

After several rounds of voting and governance proposals, Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, made the decision in a vote on Sept. 18 with the intention of fully repaying the victims of hacking.

Data from on-chain voting platform Tally shows that 99% of those who voted were in favor and the proposal was executed on September 20.

According to the description under the voting data, individual users will be reimbursed in FEI, while DAOs will be paid in DAI. Users will also be required to sign a disclaimer.

Fei founder Joey Santoro said on Twitter that payment would be made 24 hours after the vote.

The total payout amount is 12.68 million FEI which is trading at $0.97 at the time of writing and 26.61 million DAI which is trading at $1, according to data from CoinGecko.

The vote was one of the final governance decisions for the DAO Tribe who announced their intention to stand down.

In their August 20 proposalthey explained that the “difficult macro environment” and “specific challenges such as Rari Capital’s Fuse hack” were all factors in the decision.

“At this point, a responsible choice for the DAO to consider is to leave the protocol in a state that would defend the FEI peg without the need for governance.”

The entire process of reimbursing victims of the hack is ongoing, with multiple rounds of voting via instant and on-chain polls; however, none have resulted in a resolution for affected users.

In a September 20 Twitter post, Joey Santoro explained the challenges they all faced in finding a solution and hopes other DAOs can learn from the incident.

Related: DeFi protocol shuts down months after Rari Fuse hack

“The biggest lesson here is that DAOs shouldn’t have to make such decisions after the fact. An explicit up-front policy, ideally with on-chain enforcement, would have saved the DAO from having to venture into governance territory. unexplored.”

Following the hack, a $10 million bounty was offered to the hackers, but it was never disclosed if they responded.