Cryptocurrencies
Lenders Are Thriving on Bitcoin’s Bust by Aiding Both Fanatics and Shorts
- Crypto lending is a world of ample collateral and margin calls
- In a bear market ‘true magic happens,’ says one startup’s CEO
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As a growing number of cryptocurrency ventures struggle for funding, cut staff or shut down, all is well in one small corner of the industry: lending.
Creditors focusing on the crypto arena say they’re 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. It’s putting lenders on both sides of Bitcoin’s bust: Helping believers pay their bills while awaiting a rebound, and also enabling bets by people who think the drop has further to go.