CoinMarketCap recently launched a new feature called Interest by CoinMarketCap. The feature allows users to compare interest rates and pick the one they like. The page currently has 33 coins. It offers information on major lending platforms such as the Celsius Network, BlockFi, and Binance. It is quite detailed, although more information might be added later.
What Users Get
On the page, users can access annualized interest rates, the terms for making deposits, and other details. For instance, users will be able to learn the minimum period before they can realize interest from a platform.
According to CoinMarketCap officials, it took them about one and a half months from concept to launch. To create the platform, the team conducted a lot of intensive research, including looking for similar products in the traditional world of finance and using them as a benchmark.
Just like the fiat market, financial firms in the crypto market also offer loans and deposit services. Interest rates are offered to depositors and lenders of cryptocurrencies and stable coins. Lending is offered to those who might need the funds as working capital, for margin trading, or hedging.
While not as large as the fiat market, the crypto lending market is quite significant; it is estimated to be worth about $5 billion. This is according to a report created by Graychain. The report claims that Genesis and Celsius have the biggest lending volumes, estimated at a combined 65%.
Before CoinMarketCap launched this feature, interest rate data in the crypto market was only accessible via LoanScan.io. However, CoinMarketCap is not just offering interest rate details. It sees it as a step towards offering more data related to related products such as derivative data on the crypto sector.
It is worth noting that CoinMarketCap will not charge companies whose data it publishes. However, the company does plan to introduce ads to the platform in the future, just like the mechanism on its main site. This will help them to monetize the data that they offer users.
No External Funding
One unique aspect of CoinMarketCap is that it has never sourced outside funding from investors. A company official intimated that the company has no plans to raise funds from investors in the near future. At this point, their financial model appears to be working quite well.
The company currently employs 30 people. This is a 100% increase from a year ago when they had just 15 employees. In 2017, the company had just 2 employees. It is a testament to the site’s growing importance in the crypto market. The site has plans to hire more people in the future, especially those in the engineering field.
CoinMarketCap has big plans for the future. In mid-November this year, it plans to hold its first conference dubbed “The Capital.” At the event, the company plans to release details about products it has lined up. The company has also been managing its finances quite well. For instance, it made its first acquisition ever in June this year with the aim of offering users of the site more accurate data on the price of cryptocurrencies.
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