A Review of 3 Blockchain Lending Platforms

The proliferation of crypto lending platforms is the latest crypto solution bridging the gap with the traditional financial industry. These platforms offer institutional and retail investors the opportunity to access banking services previously only available in the traditional financial sector.

A typical crypto lending platform enables long-term crypto holders to put their tokens to good use by lending them for agreed-upon interest rates. Doing this beats the passive buy and hold investment strategy and users get access to interest rates that are higher than what the traditional banking sector offers. The financial services provided by these platforms is on par with the services provided by traditional lending solutions. For this reason, crypto holders are increasingly adopting lending services as a way to make passive crypto income. This has led to an explosion of crypto lending solutions aimed at satisfying growing demand.

While this growth justifies crypto’s viability and presents crypto holders with another avenue to make profits, it also complicates the process of determining which platform will best suit individual needs for potential borrowers and lenders. In this article, we will explore three of the leading crypto platforms and highlight the key differences between them to help those interested make a more informed decision. These platforms are BlockFi, Nexo and Celsius Network.

According to BitInfoCharts, 97% of wallets have less than 1 BTC, so the majority of the platforms have focused on retail investors.

BlockFi

BlockFi is a New York-based crypto lending platform. The startup has pulled off impressive funding rounds. In 2017, it raised $1.5 million in seed funding from Kenetic Capital, Consensys Ventures and SoFi. In 2018, the company was the first in the sector to receive an institutional credit facility from Galaxy Digital.

This year, it embarked on another round of funding, raising $18 million from Valar Ventures with participation from Fidelity,…

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