Crypto Lending: A new trend?

Every few months, a new trend is emerging that records column spacing and encrypted Twitter chatter before moving on to the next new topic. Last month it was time to exchange IEOs and tokens before that. Right now, crypto-lending is a hot topic, and the interesting question is: are crypto-lending platforms a solution to a common problem or solution to finding a problem that is at stake?

Before we try to answer that, there are some basic facts: It is extremely difficult to get a bank loan for personal or business use, which is hardly possible these days. As long as you have no property against which you can provide security, you will have difficulty obtaining a loan, and even if you do so, the interest will probably be exorbitant. Gone are the days when you can go to your bank, sit down with the manager, and work out the terms of a loan that could help you start your own business. Try it today by immersing yourself in the conversation that you are planning your own crypto startup, and not only will you be denied credit, but also at risk of closing your account.

This is the suspicion with which the old financial system regards crypto. They will eventually turn out to be wrong at about the same time as the last of their venerable banks are being turned into nightclubs and apartments. Crypto loans were a slow trend this year before being launched this week in a flood of announcements. For example, in July, Bitcoin.com partnered with the Cred loan platform to offer up to 10% of BCH and BTC holdings. The loan platform allows borrowers to receive $ 25,000 or more in Fiat currency against secured crypto assets. On Monday, August 26, news.Bitcoin.com posted an article about the changing crypto-exchange landscape where more exchanges are likely to launch loan services in the near future. This future turned out to be closer than expected and Binance unveiled its new credit platform on the same day. Binance also has SGC listed, which is one of the stable coins in the market right now.

The focus of the release was on the benefits for lenders, who will receive up to 15% annual interest on their BNB, USDT and ETC. On Wednesday, the first round subscription was completed in less than 20 seconds by lenders seeking to block their crypto assets. This feat says something about the interest in crypto loans, but it probably says more about the strength of the Binance brand. It could also say something about the diminishing opportunities for people to earn interest on their fiat holdings: With negative returns, you are now likely to be penalized for buying 30-year government bonds.