2 mins read Binance Pool has launched a new $500m lending project which is designed to help crypto miners get on their feet.
The company, which is a subsidiary of the Binance cryptocurrency exchange, will offer lending opportunities to private blue-chip Bitcoin mining entities which meet the vetting process.
The conditions include 5% to 10% interest rate over a period from 18 to 24 months. Applying companies will also have to provide some digital or physical assets as security.
Binance Pool will assess various factors in determining which company would have the biggest benefit and poses the least risk to the $500m fund.
The subsidiary will also be launching cloud mining products, which will allow it to further help the mining industry.
On top of everything else, an applicant will need to already be classified as a Binance VIP user and connect at least 500 PH/s to the Binance Pool for a minimum of 24 months once the loan is delivered.
There were no specifics offered in the announcement as to how much of the $500m can go to a single company.
This will probably be a changing metric as Binance Pool familiarizes itself with potential applicants, the security they can offer, and their chances of long-term success. Binance has so far not issued a single loan, nor does it specify when this process will begin.
The crypto mining industry has taken some reputation damage recently. A cloud mining app in India managed to scam 31 investors out of $54,663. Meanwhile, authorities around the globe have been cracking down on illegal operations, and most recently in Argentina.
Because of the often-high costs associated with crypto mining, some ill-meaning parties have been trying to take advantage of that. Authorities are now determined to uproot the illegal operations.
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