Binance Pool (NASDAQ:POOL), the service arm of Binance dedicated to improving the income of miners, has announced the launch of a $500 million lending project that aims to support the mining industry through the crypto winter.
Binance Pool Launches $500 Million Mining Fund
On Friday, October 14th, Binance, the world’s largest crypto exchange, announced the launch of a $500 million fund dedicated to providing loans to public and private blue-chip Bitcoin (BTC) miners.
The loan system will also be made available to digital asset infrastructure companies around the world. Miners looking to acquire loans from the Binance Pool will first be required to pledge collateral in the form of physical or digital assets.
The new Binance loans issued to eligible borrowers will have a duration of 18-24 months. According to the announcement, the Binance Pool fund will charge an interest rate ranging from 5-10%.
Binance Turns to Cloud Mining
Binance revealed that it is also seeking out cloud mining vendors in order to launch products related to cloud mining.
Binance is looking to work alonside cloud mining vendors, as the cloud mining hash power will be directly purchased from BTC mining and digital infrastructure providers.
On the Flipside
- Bitcoin’s mining difficulty and hash rate both reached all-time highs in October, as the difficulty increased 13.5%, while its hash rate hit 325.11 EH/s, as of October 11th.
Why You Should Care
The Binance Pool fund seeks to bolster the crypto mining ecosystem in order to sustain it through the elongated crypto winter.
Binance is dedicated to decentralization. Find out more:
Binance Is a “Big Proponent of Decentralization,” Says Binance CEO
To prevent future exploits Binance recently performed a hard fork on BNB Smart Chain:
Binance-Backed BNB Smart Chain Completes Hard Fork to Prevent Future Cross-Chain Bridge Hacks