Cryptocurrency creditors have been making a lot of money regardless of the bearish market trend. These crypto creditors are to grab hold at profits by selling crypto to two categories of borrowers. One is die-hard crypto lovers, they believe in crypto assets. These investors expect the market to get the old strong position and second are institutional investors, who are looking to possess digital assets for short selling.
The previous year started with a fall in the crypto market. It continued till the end of the year and had been carried forward this year too. The crypto market shed half of its value last year.
Since the crash took speed in November, many blockchain companies are restructuring their system on a significant scale. Companies are trying to find out new methods of surviving in the bear market. While some companies are smart and lucky enough to have time and resources to change their operations, some have fallen on their knees. Some companies are closed forever.
Some companies are undertaking layoffs to maintain the management cost. This all might look gloomy, but it is not depressing for many. Companies and investors still have hopes and resources to help the market stand again.
Crypto lending activities took a grip in 2017. Crypto lenders enabled crypto investors to borrow money by using their digital assets as a mortgage. This has helped crypto lenders in acquiring profits continuously.
BlockFi, a lending firm from New York has recorded a ten times growth in its clients and revenues since mid- 2018. The company received investment worth $2.5 million Mike Novogratz’ Galaxy Digital.
The lending company started creating a USD based crypto lending fund which would accept Ether and Bitcoin as collaterals and lend USD against them. Business enthusiast and crypto lovers are seeing potential in the market, and they are expecting it to grow. Developers are making more money by offering people with flexible and feasible structures with affordable interest rates, and of course the security.
The present bearish trend in the market might have cut the value of many assets, but crypto lenders are flooding the BlockFi service. The growth is so much that BlockFi now offers services to 42 states across the US.
In the same way, SALT (crypto lending firm formed in 2017), has recorded massive growth in its revenues and operations.SALT claims to have more than 70,000 borrowers. It said to have lent over $50 million since the services are launched.