A report from Bloomberg is indicating that lenders in the crypto space are doing quite well in spite of the market descent.
The report cited that creditors that offer this kind of service in the crypto industry are “finding strong demand from borrowers who don’t want to sell their virtual coins at depressed prices, as well as from big investors eager to borrow coins for short selling.”
The report continued to say that profit of the crypto lending firm BlockFi has increased tenfold since the month of June, after which Michael Novogratz’s firm Galaxy Digital Ventures put in $52.5 million.
The company loans fiat currency to consumers that deposit cryptocurrencies. The CEO of BlockFi, Zac Prince, remarked that “it’s a low-risk type of lending,” after proclaiming that the firm “never had a loss of principal.”
Michael Moro, the CEO of Genesis Capital, a firm that lets users borrow crypto in exchange for dollars, asserted in an interview that “the bear market has certainly helped, at least has fueled the growth.”
It was reported by Cointelegraph back in October that Genesis processed $550 million in its first six months of activity. Now, Moro said that Genesis has processed $700 million in loans and holds an estimated $140 million in loans outstanding with an average duration of six weeks.
While other firms in the crypto space are considering layoffs, Genesis is now looking to add to its workforce and bolster it to 12 people, and expand its reach to 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.”
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