Home CryptoCurrency News Virginia Fairfax County Pours $70 Million Into Crypto Lending As Investment
CryptoCurrency News - August 8, 2022

Virginia Fairfax County Pours $70 Million Into Crypto Lending As Investment

The crypto winter brought more devastating impacts on some crypto lending platforms. There was a lot of battling by most lending firms to evade liquidation. Their turbulent waves created distrust, loss of hope, and funds for many investors.

In the history of the crypto lending space, instability and quaking are connected to the collapse of the Terra ecosystem’s algorithmic stablecoin. This was closely followed by the fall of the LUNA token, which has metamorphosed recently to Luna Classic.

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The outplay of the event catalyzed the emergence of the crypto winter that led to a massive loss of funds. This situation spread like a comprehensive fire to the entire crypto space. As a result, almost all the cryptocurrencies lost large percentages of their values from the beginning of 2022.

Some lending platforms that gave high interest received the worst blow. Three Arrows Capital (3AC) first had a fall, creating a contagion for others. Voyager Digital later followed as it declared insolvent, with Celsius Networks closely following it.

All the chaos with the lending sector of cryptocurrency is not putting a halt on Fairfax County Retirement Systems’ plan. The pension fund of Fairfax County got approval to venture into yield farming. The permission would lead the pension fund to invest $70 million in two different crypto lending platforms.

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Recent Firms To Enter Crypto Lending Landscape

A month ago, two retirement systems announced their investment of $35 million into the digital yield fund of Parataxis Capital and VanEck’s new finance income fund. The retirement systems are the Fairfax County Police Officers Retirement System and Fairfax County Employee’s Retirement System.

The Fairfax County Police Officers Retirement System’s chief investment officer, Katherine Molnar, commented on the recent move. Molnar stated that the fund had gained about 350% in its original market investments. The executive believed there would be a positive change, and the technologies with robust strength and innovation would strive.

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Interacting with FT, Molnar further mentioned that some achievable yields through yield farming strategy are impressive. The reason is linked to the fact that older participants have backed out from the space.

Officer Molnar explained that currently, there are attractive yields. But these are just available to decent profit-seekers willing to provide liquidity with their funds.

The history of investment within the digital asset space for the administrative region goes back to the past three years. The Police Department of Virginia had also invested part of its pension fund in Bitcoin and blockchain technology. This recorded the initial plunge into virtual currency investment.

Virginia Fairfax County Pours $70 Million Into Crypto Lending As Investment
After weeks of positive price action, the crypto market enters the red zone | Source: Crypto Total Market Cap on TradingView.com

Director Jeff Weiler had remained unshaken by the volatile nature of the virtual assets. He maintained that every investment has its related risks. However, he mentioned that getting involved with cryptocurrencies offers massive rewards to investors.

Featured image from Pexels, chart from TradingView.com


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