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Crypto Winter Sets Off Rise In Business For Cryptocurrency Lending Platforms

The crypto winter has lasted for a long time and it has made some of the investors skeptical. However, there is a handful of blockchain-focused companies that are still surviving this market. Joining this stride are the cryptocurrency lending platforms.

In the blockchain selections of this year’s Forbes Fintech 50 2019 picks includes one the promising crypto borrowing and lending platform, Celsius Network. It is founded by Alex Mashinsky, one of the investors in VOIP (Voice Over Internet Protocol), who is now working on, what he refers to as, “MOIP” (Money Over Internet Protocol).

Launched in July 2018, Celsius Network, a cryptocurrency lending platform, originated over $630 million in crypto loans. It was founded to provide financial services to cryptocurrency holders like interest-earning wallets and low APR loans. Mashinsky explained that when the banks make a profit, they give it back to themselves or the shareholders, but nothing goes to the depositor. He further added, “Celsius is taking the same concept as banks by allowing people to take out loans or deposit coins. The only difference is that up to 80% of the income generated is given back to the depositor every week,” as published on Forbes.

Genesis Capital, a company that allows users to borrow crypto in exchange for dollars, processed $550 million during its first six months of activity. Michael Moro, the chief executive officer of Genesis Capital, said in an interview that the bear market has certainly helped, at least it has fueled the growth, as mentioned on Cointelegraph.

While other companies have been cutting down on staff and operations, these cryptocurrency lending platforms like Genesis Capital are planning to double its staff to 12 people and expand in Asia. “We’ve been profitable from day one. We’ve certainly proven that there is market demand, that there’s product fit and that it’s time to invest even more in this side of the business,” commented Moro.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Aabha Singh finds time from her hectic editorial schedule to write finance articles.

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