Goldfinch's African crypto lending project has collapsed, and the GFI token has plummeted by 99.8%

According to Protos, the decentralized lending protocol Goldfinch, led by a16z and aimed at serving the unbanked population in Africa, is in crisis.

On-chain data shows that among the 8 borrowers in the project, 2 have officially defaulted, and 6 have entered debt restructuring, with total losses exceeding $18 million. Depositors are lamenting that "the $50 million has gone down the drain." Its native token GFI has fallen from a peak of $32.94 in January 2022 to below $0.07, a decline of 99.8%, and the project's market value has shrunk from a peak of $390 million to less than $6 million.

Goldfinch had previously lent over $100 million to borrowers in 18 countries, including motorcycle rental companies in Kenya and salary advance platforms in Nigeria, but the core issue lies in the severe lack of off-chain credit verification, with borrowers frequently misappropriating funds and refusing to repay. As the default rate rises, the project has quietly abandoned its positioning in emerging markets in Africa, shifting towards institutional credit funds like Ares and Apollo, rendering its original vision of inclusive finance a mere facade.