Crypto Lending Continues to Thrive Even as Prices Fall

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Cryptocurrency prices have been battered this year, and that’s been the sole topic of interest, both for the enthusiasts and the skeptics. However, as the prices dropped, one business has boomed: crypto lending. While all the other startups in the crypto space were counting on prices hitting their former highs, this industry has been making money both with the drops and the rises. In fact, some of the titans in the industry have revealed that the bear market in 2018 only accelerated growth in their industry.  And while some firms such as Bitmain and Consensys have been cutting down costs and laying off staff, crypto lenders have been expanding. Some like the Novogratz-backed BlockFi have seen a 1,000 percent increase in the number of clients. Others like Aave have opened new offices globally to cater to a rapidly-expanding market base. The New Crypto Gold Mine While everyone else focused on the skyrocketing prices of cryptos in 2017, a few entrepreneurs recognized a unique opportunity. In 2017, investors in digital currencies were riding on a wave of utopia. They believed the assets would keep rising and were thus hesitant to sell their crypto stashes. This gave birth to the crypto lending industry. The lenders gave the investors an opportunity to receive fiat money, with their cryptos acting as collateral. Then came the bear market of 2018. The lenders had to adapt to stay in business, and adapt they did. The lenders now began lending cryptos and collecting fiat. Their biggest clients have been…
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