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Binance, the cryptocurrency exchange, has announced plans to support crypto miners via a lending program established by its mining pool. This week the platform launched the initiative and, at the same time, also said that Binance Pool is hoping to launch cloud mining products.
An announcement by Binance is seen as massive news for cryptocurrency miners and infrastructure providers. Binance announced on its blog on October 14th that its mining subsidiary Binance Pool launched a $500 million lending pool to finance loans to support the crypto mining industry.
A Binance Spokesperson said, "As one of the top mining pools in the world, Binance Pool will not only operate as a mining pool but also will take responsibility for contributing to building a healthy industry, especially during an uncertain market conditions."
Binance is the largest crypto exchange by volume in the World. Crypto experts see their move into the lending market as a positive boost to the industry. This program will aid bitcoin miners and infrastructure providers and is part of Binance's efforts to bolster the mining industry.
Applicants will have to fulfill certain conditions to qualify for a loan. Loan terms are 18 - 24 months, and interest rates are between 5% and 10%. Loanees also need to demonstrate some physical or digital assets to offer as security. Binance will assess loanees' creditworthiness based on a wide range of metrics. These metrics include mining power, current performance, and security.
Binance announced that it would launch its cloud mining service in November 2022. This move will provide serious competition to Bitdeer, owned and operated by Jihan Wu. Binance's announcement comes after Bitdeer announced its own $250 million fund in September 2022, created to buy distressed assets. Wu was a founder of Bitmain, the World's largest manufacturer of crypto mining equipment. The other Bitmain founder, Ketuan Zhan, owns BitFuFu, another giant player in the cloud mining space.
It has been a challenging period for crypto miners. Bitcoin's price has stuck at around $20,000 for months. While still a healthy amount, it is a long way off its November 2021 peak of $68,000. In addition, Compute North, one of the World's largest crypto-mining data centers, filed for bankruptcy in September 2022.
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The much talked about Polygon MATIC cryptocurrency platform is directed and discussed to provide a thorough guide to this relatively new kid on the block
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