Goldfinch African crypto loan project collapses GFI tokens plummet 99.8%

According to Protos, Goldfinch, a decentralized lending agreement led by a16z and targeted to serve unbanked people in Africa, is in deep crisis. Chain data shows that 2 of the eight borrowers of the project have officially defaulted and 6 have entered debt restructuring, with cumulative losses exceeding US$18 million, and depositors are calling "US$50 million wasted." Its native token GFI fell to below US$0.07 from a January 2022 high of US$32.94, a drop of 99.8%, and the project's market value shrank from a peak of US$390 million to less than US$6 million. Goldfinch has previously lent more than US$100 million to borrowers in 18 countries including Kenya Motorcycle Rental Company and Nigeria Salary Advance Platform. However, the core problem is the serious lack of offline credit review, and it is common for borrowers to misappropriate funds and refuse to repay. As the default rate rises, the project has quietly abandoned its positioning as an emerging market in Africa and turned to institutional credit funds such as Ares and Apollo. The original vision of inclusive finance exists in name only.