The concept of crypto lending platforms is very appealing to a lot of people. Despite high interest rates on various assets, not everyone thinks this business model will last.
There appears to be some concern regarding crypto lending platforms in 2019 and beyond.
Crypto Lending Platforms get Some Heat
More specifically, the high interest rates are not what is of concern right now.
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! What users do worry about is how users are too willing to give up control over their funds due to services like these.
Not one’s private keys, not one’s funds, after all.
If a popular crypto lending platform were to disappear for a wide variety of reasons, users will lose their money in quick succession.
Although most companies tend to put a strong focus on security, there will always be loopholes to contend with.
One Reddit user recently claimed how he would put $40,000 in stablecoins on one of the crypto lending platforms.
While there are high returns to be expected, trusting a company with one’s funds for a full year seems to be a bit of a stretch.
A similar sentiment is echoed by most of the Reddit community these days.
Any centralized company will put user funds at risk, either willingly or unwillingly.
There have been numerous horror stories regarding crypto lending platforms over the years.
With more money coming in due to high returns, there s a chance criminals will target these service providers again in the future.
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