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Crypto Lending Firm Compound to Expand to Retail User Market: Fortune

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  • Yuri Molchan
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    A crypto lending startup Compound raises $25 mln from Andreessen Horowitz and is ready to offer crypto worth $150 mln to retail customers via custodians and exchanges

Crypto Lending Firm Compound to Expand to Retail User Market: Fortune
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Fortune has spoken to the Compound founder, Robert Leshner, and found out details about his brainchild that brings together those who wish to lend crypto and earn some interest and those who want to borrow it.

Now, having received $25 mln of investments, the startup intends to expand the scale of its services and tap the market of retail borrowers and lenders.

Compound to integrate with crypto exchanges, custodians, wallets

The San-Francisco-based Compound (neighbor of Ripple and Coinbase) is an automated crypto lending platform that has so far been working with large-scale customers.

Speaking to Fortune, Robert Leshner mentioned that Compound is going to cooperate with crypto exchanges, wallets and custodians for a wider market expansion to let retail investors use its services too. The integration with other crypto platforms would happen by the end of next year.

The company works with USD-pegged stablecoins. These days those are preferred by businesses for storing value and protect their funds from the volatility roller coaster.

Decentralization is crucial for Compound

Customers who want to borrow stablecoins from Compound have to leave a collateral in Ethereum or other crypto.

The whole process is done automatically, with the help of the platform’s software. The Compound founder emphasized this as a vital issue, since many come to the company feeling negatively about the conventional system of banks.

"As with Bitcoin, we want to ensure that no one, including the company that built it, can exert undue influence on Compound's protocol."

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Borrowing against ETH

Compound mainly works with two types of borrowers, as per the founder. The first one is startups that have raised a great deal of ETH through ICOs. The other group consists of traders who wish to invest their ETH on a short-term basis.

As for the investments, stated Leshner, the $25 mln came mainly from Andreessen Horowitz, Bain Capital and some other companies.

Chris Dixon from Andreessen Horowitz stated:

“Compound is a lending protocol that is open to anyone in the world, that disintermediates banks and allows anyone to earn interest on their money. We’ve worked with Robert and his team for over two years and think they are world class technologists and entrepreneurs.”

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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Ripple Once Again Tries to Toss Class-Action Lawsuit, Insists XRP Is Not a Security

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  • Alex Dovbnya
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    Ripple makes a final push to dismiss the damning class-action lawsuit ahead of a court hearing that is scheduled for January 2020

Ripple Once Again Tries to Toss Class-Action Lawsuit, Insists XRP Is Not a Security
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Ripple has once once again asked a federal court to dismiss the pending class-action lawsuit over selling illegal securities, a new court filing shows.

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The company reiterates the same "statue of repose" argument, which means that the plaintiffs failed to meet a legal deadline for filing the suit. Ripple started selling XRP to retail investors back in 2013, which means that it was way too late to bring legal actions against it back in summer 2018 after a bar to a lawsuit was imposed in 2016.    

The blockchain behemoth also continues to insist that XRP is not a security, but it called this issue "irrelevant" to their latest motion, which is why it didn't address this point in-depth. It's not the first time that Ripple tries to dodge the big question that is the cornerstone of the long-lasting legal battle. 

"XRP is not a security, but that is irrelevant for purposes of this motion. Even if XRP were a security, Plaintiff's claims still fail as a matter of law,” the filing said.   

Ripple's previous attempt to throw the suit out of the court didn't bode well. As reported by U.Today, Bradley Sostack, the leading plaintiff in the ongoing case, believes that the defendants are still liable for selling illegal securities. The parties are expected to duke it out in court in January 2020.  

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XRP's status as a security remains a point of contention within the cryptocurrency industry. Crypto influencer BitLord recently slammed Ripple for dumping their native tokens on investors to acquire businesses.    

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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