- MarginFi CEO Edgar Pavlovsky resigns following accusations from Solana staking protocol SolBlaze.
- Over $260 million has been withdrawn from MarginFi and reshuffled to other Solana platforms.
- MarginFi clarified issues with SolBlaze and assured users of its protocol's resilience.
In the last two days, MarginFi has seen more than $260 million leave its platform into other competing Solana platforms on Thursday. This comes after it was hit with a controversial accusation from staking protocol SolBlaze (BLZE) and the news of its CEO Edgar Pavlovsky resigning. However, after clarifying with SolBlaze and recent reassurance from Pavlovsky, the protocol has calmed users' nerves.
Read more: Solana scrambles to patch failed transactions on its chain, crushed under rising user activity
MarginFi sees nearly 31% decline in TVL
MarginFi was on the receiving end of a hot accusation posted by SolBlaze in their X handle on Wednesday. They accused MarginFi of pocketing three weeks' worth of BLZE emissions meant for users by refusing to distribute it to users. Additionally, they said MarginFi further acted in bad faith by dumping hundreds of millions of BLZE tokens meant for protocol governance.
As the post made the rounds on X, more woes hit MarginFi as its co-founder and CEO Edgar Pavlovsky announced his resignation in an X post on Wednesday. He said, "It's a world-class team -- it really is -- but I don't agree with the way things have been done internally or externally."
Also read: Solana meme coins see steep correction as bull market enthusiasm fizzles out
Following the double hit, users panicked, withdrawing more than $260 million from MarginFi. Users quickly shuffled those coins into competing platforms within the Solana ecosystem.
To lure in users to its platform, lending protocol Solend (SLND) quickly promised an airdrop to as many that moved friends from MarginFi to its protocol. As a result, deposits on the platform jumped nearly 12% in the past 24 hours. Its native SLND token increased by 44% before experiencing a correction. Other lending platforms like Kamino and Drift.
However, a recent move by one of its co-founders shows SolBlaze made a mistake on how long MarginFi has yet to distribute emissions - eight days instead of three weeks.
Happy to work with the Solblaze team to resolve some of the comments and confusion from earlier
— marginfi ◼️ (@marginfi) April 11, 2024
marginfi was one of the first Solblaze integrations and plans to continue supporting these efforts going forward
Users will be refunded for the period when emissions were not active… https://t.co/v2YR2mo62b
It said this was because of the recent congestion the Solana blockchain experienced. MarginFi staff and the resigned CEO have also praised the resilience of the protocol despite the withdrawal exodus it faced
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.