Crypto Lenders Are Cashing In on the Crypto Bear Market

Lenders in the cryptocurrency industry are reportedly weathering the recent crypto bear market better than others, Bloomberg reported on Jan. 2.

According to Bloomberg, creditors that offer their services in the cryptocurrency 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.”

Bloomberg reports that revenue of the crypto lending company BlockFi has grown tenfold since June, after which Michael Novogratz’s company Galaxy Digital Ventures invested $52.5 million in the firm. The company lends fiat currency to clients that deposit cryptocurrencies. BlockFi’s CEO, Zac Prince, said that “it’s a low-risk type of lending,” after declaring that the company “never had a loss of principal.”