ViaBTC | Amid the Frequent Crashes, Investors Know Little About Crypto Lending Platforms

I. The origin of crypto lending platforms

The last bull market can be seen as the result of the DeFi boom, which has had profound impacts on the whole market.

II. The necessity of lending platforms

Lending in the legacy financial system is known for its tough requirements, which include strict credit checks, bank accounts, and sufficient cash flows.

III. Reasons behind some lending platforms’ bankruptcy

As the market becomes increasingly bearish, more and more crypto lenders have gone bankrupt. For instance, on July 13, Celsius filed for Chapter 11 bankruptcy.

IV. The role played by lending institutions in the crypto market

After the DeFi boom, a growing number of crypto holders now choose to earn more profits via crypto finance. With lending platforms, they can not only deposit their idle cryptos to earn interest for a period but also expand their investment scale or portfolio by acquiring more cryptos through collateralized lending.

V. The future of crypto lending

Crypto lending plays a vital role in the market. It is to the crypto market what conventional lending is to the legacy financial system. Through lending platforms, more crypto investors can have access to more cryptos so that they can optimize their portfolios and earn more passive income. Meanwhile, more traditional investment institutions will join the crypto lending market and provide greater liquidity for the crypto space and more versatile investment options for users.

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