Graychain Report Shows Crypto Lenders Earned Under 2% On $4.7 Billion Worth of Loans

Cryptocurrencies are bringing a revolution to the world but if you want to use them in order to profit from loans, we have bad news for you. According to a new report made by Graychain, a crypto credit assessment company, $4.7 billion USD has been lent in the crypto industry up until this point. However, the returns from that are only 1.8%.

Borrowers generally get at least 6 to 10% returns on investments per year, so a profit of only 2% is meaningless. Inflation is higher than that in most countries.

The CTO of Graychain, Neil Zumwalde, has said that most companies are actually lending money for very short periods when compared to more traditional loans. Also, it is easier to make it look like the loans are more profitable when you look at their originations only.

He said that the company gathered data from several companies such as Dharma, Compound, Unchained, and Maker in order to make the study. Some companies such as Genesis and Celsius, however, are less prone to offer information and can keep it private. Without this private information, the numbers can be slightly different from the reality.

According to the executive, the market is growing fast. As the industry is maturing, more opportunities are appearing and more loans are being made.

Part of the reason why the profit is so low is that cryptos are volatile and because some of them are very short. As prices change all the time and nobody wants to lose money, people often don’t hold the money long enough.

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Author: Gabriel Machado

Patientory (PTOY), The Crypto Worth Less Than A Cent, Can Be Very Profitable In The Future

Many cryptos are all about a promise. Patientory is one of them. The crypto, which was created for a health app, is worth only a cent per PTOY token, but some of its executives believe that the project may be worth millions in the day.

Chrissa McFarlane, the CEO of the company, was recently interviewed by the crypto media outlet Coindesk. According to her, at the moment people are using the token only for small experiments, but she defended that the project may be worth millions in the future.

One of the main goals is to have data from healthcare providers in order to create a big network that will provide all range of health services for users.

At the moment, the project lacks clients, but it has a growing community with several contributors. The project is basically gearing up for a profitable future, its CEO affirms. According to her, the standards for interoperability of the company are getting better and, with time and testing, the network will finally be prepared to empower patients and to finally be profitable.

So far, Patientory was only able to get $12.4 million USD. Most of the money came from the Initial Coin Offering, which was held two years ago, but some came from venture capital later on. Most of the money has been used in the development of the platform and in related events aimed to bring awareness to the project.

Unfortunately, the future of this project is far from certain. While the management is sure that the product is innovative and will bring millions in profit, the truth is that most startups end up dying after a few years.

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Author: Daniel W

Fidelity International Will Soon Enter the Cryptocurrency Space with Digital Asset Trading Desk

Fidelity International Will Soon Enter the Cryptocurrency Space with Digital Asset Trading Desk
  • More companies in traditional finance sector are launching projects that connect them with the cryptocurrency industry.
  • Fidelity International exec Anne Richards discussed a crypto-based trading game within the company while at a conference.

With the increased popularity of the cryptocurrency market, it should come as no surprise that traditional finance companies are choosing sides. Fidelity Investments is one of the more innovative companies, as their subsidiary Fidelity International gets closer to entering the cryptocurrency space. According to reports from Ethereum World News and others, Fidelity Investments has already set up Fidelity Digital Assets, a custody operation.

Reports from Financial News indicate that someone close to this matter confirmed the company’s interest in blockchain technology. The same source added that the trading desk for the company is almost prepared to go live. The fact that the company has its own fantasy crypto trading game for staff at the international extension is proof enough that the fund manager is welcoming to cryptocurrency.

Players of this game have to build a crypto portfolio, starting with £10,000 in virtual money. To be eligible for cash prizes, the participants have to gain the biggest returns. Presently, there are already two-thirds of the 1,200-member staff at Fidelity International that have gotten involved.

This trading game was only recently publicized by chief executive Anne Richards at an industry conference last month. Richards stated,

“We have a bitcoin trading game that we use internally, as a way of teaching people about distributed ledger technology and digital tokenization, which ultimately will be an important part of the whole financial system going forward.”

Based on these comments, and if Facebook had anything to do with the recent surge in Bitcoin’s price, then Fidelity’s impact on Bitcoin’s price could show a similar effect.

Many institutions are starting to get involved in the cryptocurrency market, and specifically Bitcoin, which is why some experts believe that they were the key buyers on the sidelines during the crypto winter. With Fidelity’s work in their Digital Assets platform, they will be helping other institutions to get involved in the sector.

If Fidelity were to finally launch products or even just use distributed ledger technology, it would easily establish the brand as a leader in the fund management industry. There are still major legacy costs in this industry, and paper documentation is still maintained. Interoperability concerns are a big reason why the implementation of blockchain has been delayed for this long but choosing to get involved could easily be a big moment for the whole financial sector.

Furthermore, Fidelity’s actions could impact both retail and institutions, which could bring on the launch of mutual funds. However, as the SEC continues to shut down the idea of implementing an exchange-traded fund, these efforts could ultimately be thwarted.

Teana Baker-Taylor, the executive director with Global Digital Finance, spoke with Financial News about the plans that Fidelity International is involved in. Baker-Taylor said,

“This signals to the market that traditional financial investment in digital assets is likely to increase and they intend to maintain their institutional first-mover advantage, providing access to digital assets to their mutual fund and pension clients, as well as private and institutional investors.”

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Author: Krystle M