According to a report by Bloomberg, cryptocurrency lenders are weathering the current bear market better than other industries. Bloomberg states that creditors who are offering their services in the crypto industry are in demand because borrowers don’t want to sell their virtual currency for less money. In addition, big investors are eager to borrow currency for short sales. Bloomberg also reports that revenue from BlockFi, a cryptocurrency lending company, has grown exponentially since June after Galaxy Digital Ventures, a company owned by Michael Novogratz, invested over $52.5 million dollars in the firm. The company is lending its flat currency to clients who make cryptocurrency deposits. Zac Prince, the CEO of BlockFi, says that this type of lending is low-risk. His company has never experienced a loss of principal. The CEO of Genesis Capital, Michael Moro, recently said in an interview that the bear market has not only helped but fueled the growth of the cryptocurrency industry. Genesis Capital lets users borrow cryptocurrency in exchange for dollars. Back in October, it was reported that Genesis had processed over $550 million dollars during the company’s first six months. Moro now reports that Genesis has issued $700 million dollars in loans and has $140 million dollars of outstanding loans. The outstanding loans have an average duration of about six weeks. Other cryptocurrency companies have been considering layoffs, while Genesis plans to double their staff to 12 people and expand their operations to Asia. In a recent interview with Bloomberg, Moro states that his company has been profitable from the beginning and they have proven that there is market demand. He feels it’s time to invest more in this side of his company because he believes that there’s product fit. Following a huge cryptocurrency market crash back in November, Steemit, a decentralized social media platform, had to restructure by laying off 70% of their overall staff. Likewise, the market drop resulted in the decline of flat currency returns from the business’ STEEM automated token sales. Huobi, a major cryptocurrency exchange, along with Bitmain, a crypto mining giant, are planning to lay off some of their staff while the cryptocurrency winter continues.
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