WHY SHOULD I TRUST WHALELEND WITH MY MONEY?
We are a VC-backed company with a long-term plan to be a key player in the cryptocurrency investment community. There are many products to come and relationships to be built. To get to where we want to go we need your support for years to come. It is simply not in our best interest to trade short-term gains for long term potentials. We value transparency with our users more than anything else. The company is located in Helsinki and can also be verified from the Finnish trade register. Feel free to come say hi and meet us in person, or drop as an email to firstname.lastname@example.org. Whalelend uses industry-leading security best-practices for cryptocurrency management.
WHO IS IT FOR?
If you have cryptocurrency sitting idle in your wallet then Whalelend can help earn you a passive income on these assets. Traditionally, the “margin lending” way of earning income has been limited to institutional investors (a ‘whale’ if you will), e.g. an index fund or a pension fund that owns $ billions worth of shares. Whalelend enables everyone to become a (mini) whale and earn interest from the lending market. In other words, anyone can be an investor at WhaleLend!
THERE’S NO SUCH THING AS A RETURN WITHOUT A RISK. SO WHAT ARE THE RISKS?
There are two main risk factors in providing funding to margin traders:
- The cryptocurrency exchange becoming insolvent (e.g. if an exchange is hacked and everyone takes a loss)
- Failure in cryptocurrency exchange risk-limiting trading engine. This scenario is seen to be extremely unlikely and has not occurred in major cryptocurrency exchanges. You can read more about this topic here
Providing liquidity to margin funding is NOT risk-free, but in our opinion and analysis of current level of return, the gains outweigh the risks.
What kind of returns can I expect?
The annualised returns vary depending on the asset and the exchange. To provide a rough idea, historically during 2017, returns on Bitfinex have been around 15% to 20% annually for Bitcoin.
Where does interest come from?
WhaleLend deploys your capital to the Cryptocurrency lending markets for traders to borrow. In return, the traders will pay interest for the borrowed capital. Your capital is protected as the loans are collateralised by the traders in such a way that the cryptocurrency traders can lose everything while your investments through WhaleLend remain protected. This mechanism is known as “margin lending”.
The details of how this works can be read here. WhaleLend is a service provider that works with you, the customer, and popular Cryptocurrency exchanges to facilitate Margin Lending. We are NOT a bank or an Investment Fund.