Binance to Launch Crypto Lending Services on BNB, ETC, USDT
The global cryptocurrency exchange Binance will be launching a lending business in order to attract more customers, and potentially one day, hold the number one spot as top crypto exchange firm. The company stated on Monday that Binance Lending will be open to customers starting from 6:00 UTC on August 28, following a first-come, first-serve basis. For now, the exchange plans to lend three cryptocurrencies.
The company proclaims that this move is a means for its users to diversify their source of income, and potentially make more money, or as the company puts it in an official statement,
“With Lending, Binance users will be able to grow their funds by earning interest income for lending out their holdings over a specific period of time”
Furthermore, users can now expands their cryptocurrency portfolios beyond trading, which is an exciting premise for many, as the crypto business never ceasing to fluctuate, and with it opportunities come and go. Users can subscribe their invested money into Binance Lending products and accumulate interest over time. The three products that will be available for lending are Ethereum Classic (ETC), USDT, and Binance’s BNB cryptocurrency. The interest that users acquire will be payable between August 29 and September 11.
The annual interest rate for the three products has been set thusly: 15% for BNB, 10% for USDT, and 7% for ETC. Binance Lending has put a subscription cap of 200,000 BNB, 5 million USDT and 20,000 ETC. If all goes as planned, and the products get fully subscribed, the company will pay interest amounting to $50 000, or 1,150 BNB, 19,178 USDT and 53 ETC. The company reassures that lenders are guaranteed to earn interest and to get their money plus profits after the aforementioned 14 day period
Despite what the CEO of Binance claims, the lending of such products does not appear less risky than the good old crypto trading, for one good reason; cryptocurrencies are know to shift in value and sometimes very unexpectedly so, and thus any sort endeavor with them is considered hazardous.
