Right when volatility proves itself to be a recurring issue, a company like Babel Finance shows its face to let everyone know they don’t have much to worry about.
Babel Finance Makes It Easier for Blockchain Firms to Get Financing
The volatility of bitcoin and the cryptocurrency space continues to make people nonbelievers when it comes to the power and benefits of digital currencies. As it stands, bitcoin is currently going through a very rough period of volatility having slipped roughly $2,000 in the past few weeks and dropping from around $12,400 per unit to roughly $10,400.
This kind of behavior really affects how traders think and feel about bitcoin and its virtual counterparts. It makes them rethink taking part in the space and adding more to their stashes. In the meantime, it also halts widespread adoption and stops retailers from accepting crypto as a means of payment given that they cannot be sure they won’t lose money mere minutes after transactions are complete. It’s a recurring problem, but Babel Finance is potentially easing things up for those looking for a break here and there.
Babel has been around for years, though not that many people are familiar with it. One of the big things that the company does is to provide financing and lending solutions on behalf of institutional crypto and blockchain companies to miners. These firms do not always have an easy time taking money from banks given that most standard financial institutions do not want anything to do with them. Given how volatile crypto is, these companies could potentially pull the plug on themselves or call it quits the moment crypto goes under. We saw this quite a bit in 2018, and we could potentially see it again.
Banks know this, and thus decide to step away, but Babel has always been there to serve as the solution for these companies when no one else will come within ten feet of them. Babel has financed some of the most prominent cryptocurrency miners by bridging their demand for liquidity with crypto loans from Genesis Capital, Bitgo, Block Fi and others.”
Making DeFi a Mainstream Thing
As of March 2020, the company has handed out nearly $400 million in financing to these companies and many others. In addition, Babel is widely “blamed” for giving rise to the decentralized finance (DeFi) space, as roughly 70 percent of the loans handed out by Babel have gone to DeFi applications and greyscale projects.
At the time of writing, the firm is looking to potentially launch a long list of notable asset management systems that will potentially push it deeper into the field of options trading. It will also make the firm much more accessible to retailer players. Options trading exchange Deribit now lists the company as Asia’s leading financial services firm.