In spite of the long, slow fallout of the cryptocurrency markets, crypto lending companies are profiting.
As the bear market continues to bite down on the cryptocurrency industry, nearly every corner of the market has been affected. Some reports have revealed that the vast majority of ICO-backed companies are worth a fraction of their original valuations; there’s even some evidence to suggest that cryptocurrency exchanges are losing users en masse.
While the rest of the industry is suffering, there is one part of the cryptosphere that has managed to thrive through the disaster–cryptocurrency lending companies.
Crypto Lending Companies Profit From Both The Optimists and the Pessimists
According to a recent report by Bloomberg, crypto lending companies have gotten a major boost in business from several sources–customers who need cash, but don’t want to sell their coins when valuations are down, as well as investors who are interested in short-selling.
In other words, the companies are benefitting from customers on both sides of the crypto market crash: those who are trying to hold onto their coins for the long run, and those who are betting that prices will continue to fall.
Bloomberg’s report named three companies specifically–Aave’s ETHLend, which just opened an office and plans to expand into the US in the near future; Salt Lending is adding to its team of more than 80 employees every month as revenues continue to grow. BlockFi has reported 100% growth in revenues and customer base since June, when it received a $52.5 million investment from Mike Novogratz’ crypto merchant bank Galaxy Digital.