We would like to inform you that rates for BTC and ETH will be renewed on April 21st
Why Rates are Lower
Cygnos has been operating its business by lending cryptocurrencies borrowed from our customers to selected overseas institutional investors.
This time, Cygnos has also decided to reduce the rate as the borrowing demand in the market for such institutional investors has decreased and the borrowing rate has dropped sharply recently.
There are two main reasons for the current decline in global borrowing demand:
- A sharp increase in Bitcoin and Ethereum lending in search of loan fees.
- The entry of professional institutional investors into Bitcoin and Ethereum price arbitrage trading, resulting in increased competition and reduced profitability of such trading.
As mentioned above, the borrowing rate in the institutional market is determined as a result of the balance between supply and demand, so the rate may increase again in the future if the borrowing needs in the market increase. However, as the borrowing rate is currently decreasing worldwide, Cygnos has also decided to reduce the borrowing rate in line with global markets.
If the rates in the institutional market increase in the future, we will reconsider the review of the rates.
- Are there any plans to increase the rate in the future?
Yes, there is a possibility of an increase. As mentioned above, Cygnos' rates are calculated based on the rates in the institutional market. If the demand for borrowing increases in the institutional market and the borrowing rate rises in the future, we will consider changing the rate again.
- Is Cygnos taking large commissions?
Compared to the average of companies with similar business models, our commission rates are relatively lower. We are constantly checking the rates of similar companies and try to produce lower commission rates compared to industry standards.
We believe that Cygnos is currently in a phase of building awareness and loyalty, and we are aiming to maximize customer satisfaction and security rather than becoming a high-cost financial structure for advertising and other expenses.