Booming crypto-lending business despite the continued bear market!
Hello dear readers,
even though we are still in a bear market, the cryptocurrency and blockchain market is evolving steadily. Almost every day there are good news about positive developments in the market and today I would like to share an interesting article with you about the booming market with the crypto-lending business.
The original article in German can be found here:
Picture Source Shutterstock and BTC-Echo
Translation of the German article:
"Until the very end, blockchain start-ups are under the crossfire of the stagnant Bitcoin rate and are in the red. Turnover forecasts are being scaled back and employees are threatened with dismissal, most recently by Steemit and the mining giant Bitmain. While former hopefuls want to regain their position in the market by changing their strategy, a market niche shines especially in spite of falling prices. Lending based on blockchain technology is becoming more and more popular.
By lending up to $ 100,000, the New York-based company BlockFi is accepting credit security in the form of cryptocurrencies.
Similar to the real credit business, the BlockFi crypto-lending platform requires credit security to limit the damage in the event of a borrower's default.
In a so-called collateral BlockFi consists of 50 percent of the loan amount as collateral in the form of Bitcoin, Ethereum or Litecoin. The loan is available at an interest rate of ten to twelve percent per annum. This makes BlockFi the market leader in a previously highly competitive segment.
Galaxy Digital Ltd. wants to close the need gap
The founder of Galaxy Digital Ltd., Michael Novogratz, is participating with an investment of $ 52.5 million at the crypto-lending platform BlockFi in May 2018. The company wants to expand, among other things, outside the United States with the help of this money.
"We proved [...] that a suitable product exists and that it is time to increase investment in this side of the business," said Michael Moro to Bloomberg.
The Managing Director of Genesis Digital Ltd. also sees the bear market as a growth driver. While the fewest want to sell their coins at the dumping price, also taxable actions are to be avoided when selling the crypto good."
Original source in German:
Greetings and hear you in my next article.
Michael Thomale
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