If you think that most of the cryptocurrency businesses are failing in times of a massive bear run, the latest crypto news show that there is success for one category of businesses – cryptocurrency creditors.
These are the people who think that market will rebound slowly and get digital assets from short selling. Essentially, they focus on crypto lending which went mainstream in 2017 and offered a way for many Bitcoin enthusiasts to borrow money using their digital assets as collateral.
So, while many believed that this niche would slow down with the prevalence of slump in crypto prices, lenders have pivoted and adjusted to the market conditions – resulting in continuous expansion and profits despite the struggling market.
One example is BlockFi, a lending firm that got an initial $2.5 million investment from Mike Novogratz’ Galaxy Digital, which in the meantime came up with reports that Novogratz owns 80% of the total shares in the company.
The bear market also might have reduced the value of most assets. However, lenders continued to flood with services like BlockFi, raising more rounds from investors. For example, BlockFi raised investments by companies like Akuna Capital and Morgan Creek Digital, expanding its services to 42 states in the US.
BlockFi is not the only example of growth in this case. Another crypto lending firm named SALT has also recorded massive growth in terms of its operations, with current claims that it has a customer base of more than 70,000 borrowers and issuing more than $50 million since the launch of its services.
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