The art of crowdlending: time to explore cryptos?
Crowdfunding and crowdlending platforms are becoming more and more popular over the recent years, a report from Transparency Market Research said that the P2P market would be worth almost 800€ billion by 2024, including annual growth of around 53% until 2020.
The growth is also happening in NEO Finance, with over 6,040 investors, and 6,909 loans issued with a value of over 27 million euros, the company is the leading crowdlending portal in Lithuania.
The market praises loan numbers, customers satisfaction, and regulation too as comparison websites like Financer highlights it.
Top European comparison website Financer considers NEO Finance as one of the favourite crowdlending websites among their users.
That being said, crowdlending firms are working all across Europe. P2P lending platforms connect lenders with borrowers, and it involves debt finances, more return on investment, but it also represents more risks for the investor.
Well, there is another market that is booming, the cryptocurrencies and the blockchain industry. With rallying prices in cryptocurrencies and broader implementation of the blockchain technology, it is becoming the new standard in financial industry.
As you may know it, Bitcoin prices rocketed over 1,300% in 2017, but it collapsed 73% in 2018. So, with companies assuming projects with top prices of 2017, but executing it with current crypto values, startups and entrepreneurs are in need of funding.
Recently, the South China Morning Post reported that New York based crypto assets bank Galaxy Digital was planning to raise $250 million in a funding series for a lending business that will assist cryptocurrency businesses.
In the past, Galaxy Digital made movements on crypto lending, but they saw demanding from borrowers growing so much that they wanted to move forward.
As the report highlights, "with the cryptomarket in free-fall since 2018 – bitcoin has fallen more than 80 per cent since last year – an increasing number of cryptocurrency firms are looking for funding".
Taking Galaxy Digital as a sample of what could be coming in the next years, P2P lending to crypto related customers could provide tremendous business opportunities as there are people interested in new technologies and willing to take risks to see their projects coming true.
It would be like surfing the two top waves in the financial market right now and taking a leading position ahead of the new technological leap.