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Lenders in the cryptocurrency sector reported that they have outgrown the recent crypto-bear market better than others, according to Bloomberg on 2 January.
According to Bloomberg, lenders offering their services in the cryptocurrency sector "are looking for a strong demand from borrowers who do not want to sell their virtual coins at low prices, as well as from big investors eager to borrow coins for sales uncovered".
Bloomberg reports that the revenues of the BlockFi encryption company have increased tenfold since June, after which Michael Novogratz's company Galaxy Digital Ventures has invested $ 52.5 million in the company.
The company pays fiat to customers who deposit cryptocurrencies. BlockFi CEO Zac Prince said that "it is a type of low-risk loan" after declaring that the company "never had a loss of capital".
Michael Moro, chief executive officer of Genesis Capital, a company that allows users to borrow crypto in exchange for dollars, reportedly in an interview said that "the bear market has certainly helped, at least it has fed growth".
As Cointelegraph reported in October, Genesis processed $ 550 million during its first six months of activity. Now, Moro has reported that Genesis has issued loans for 700 million dollars and has about 140 million dollars in loans with an average duration of six weeks.
While other companies in the cryptographic space have considered layoffs, Genesis is now planning to double staff to 12 people and expand into Asia. Moro stated in an interview with Bloomberg:
"We have been profitable from day one, we have certainly shown that there is a demand from the market, that there is a suitable product and that it is time to invest even more in this part of the company."
Following the collapse of the market crash in November 2018, the decentralized social media platform Steemit had to lay off more than 70% of its staff and start structural reorganization. The decline in the markets led to a decrease in fiat currency yields from the automated STEEM token sales.
The giant Bitontoin cryptocurrency mines and the most important encryption exchange, Huobi, have also confirmed plans to fire the staff while continuing "the winter crypto".
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