China is reportedly witnessing a surge in peer-to-peer cryptocurrency lending amid the country’s recent liquidity crunch and the virtual currency markets’ bear season. Despite regulatory uncertainty, entrepreneurs are reportedly eying opportunities in the nascent industry.
PEER-TO-PEER CRYPTOCURRENCY LENDING GAINS POPULARITY IN CHINA DURING BEAR MARKET
Chinese media outlet, Sohu, has published a report on the increasing proliferation of cryptocurrency lending platforms.
Zhang Le, described as a veteran of the cryptocurrency industry according to Sohu, stated: “At present, most of the market only recognizes two major currencies, Bitcoin and Ethereum. This business is currently earning interest.” Xu Lizhen described those lending through the platform as comprising long-term cryptocurrencies holders who aren’t interesting in trading the markets in the short term.
This is just the need. When the currency is low, people who are speculating in the currency will definitely not be willing to sell the coins. Once they are short of money, they must find such platforms. The demand has formed this market,” Zhang Le said.
The media outlet cited industry insiders as estimating that there are currently more than twenty startups operating in the cryptocurrency loan industry.
https://dictoms.com/peer-to-peer-cryptocurrency-lending-grows-increasingly-popular-in-china/