- Telecommunications Giant Vodafone Leaves the Libra Association
- Group of Central Banks Assesses Developing Central Bank Digital Currencies
- South Korea Might Impose 20 Percent Tax on Cryptocurrency Profits
- Report: Terrorists Increasingly Use Crypto to Raise Funds Anonymously
- Canadian Securities Administrators Subject Crypto Exchanges to Securities Laws
With the bear market showing no signs of turning around, the crypto market is starting to see the effects of such a long exposure to the lowered prices. The bad state of the market is starting to become an accepted norm with companies and organizations forming their policies and business plans around the bear market.
The happiest in this situation is the crypto lenders, which is perhaps why Galaxy Digital, the crypto merchant bank launched by former hedge fund manager Michael Novogratz, is raising $250 million to build a credit fund.
According to the reports, the fund would offer loans in U.S. dollars to struggling crypto firms because of the profitable state of the credit sector in the crypto market. Galaxy Digital would require collateral in the forms of property, mining devices and crypto tokens for the loan approval. The company is expected to close the first round of fundraising in March.
The moves from Galaxy Digital emerge after suffering through a bad year overall in 2018. In November, Novogratz said in an interview that it sucks to build a business in the bear market. Many large firms have reported losses in their annual and quarterly reports at the end of 2018. This is expected as the now over a year old bear market has brought the crypto market almost down to a halt. However, some are optimistic regarding the state of the market (including Novogratz) saying that there’s not much left for the market to lower and that it can only get better from here.
Galaxy Digital also reported a net loss of $76.65 million for the third quarter of 2018. The amount accounts for more than a third of its nine-month loss of $175.68 million as of September 2018. However, the company is heading into the lending business with the hopes of improving those numbers and turn the tide on their year in losses and disappointment.