Goldfinch crypto lending project collapses, GFI token plunges 99.8%

According to Protos, Goldfinch, a decentralized lending protocol backed by a16z and originally focused on serving the unbanked population in Africa, is now in deep crisis. On-chain data shows that two of its eight borrowers have formally defaulted, while six have entered debt restructuring, resulting in cumulative losses exceeding $18 million, with depositors lamenting that "$50 million has vanished." Its native token, GFI, has plummeted from its January 2022 high of $32.94 to under $0.07—a 99.8% decline—reducing the project’s market cap from a peak of $390 million to less than $6 million. Goldfinch had previously extended over $100 million in loans to borrowers across 18 countries, including motorcycle rental companies in Kenya and salary advance platforms in Nigeria. However, the core issue lies in severe deficiencies in off-chain credit underwriting, with frequent cases of borrowers misappropriating funds and refusing to repay. As default rates rise, the project has quietly abandoned its original mission of serving African emerging markets and shifted focus toward institutional credit funds such as Ares and Apollo, rendering its original vision of financial inclusion effectively obsolete.