August 14, 2022

Porter Finance Platform Closes Cryptocurrency Bond Issuance Service

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Porter Finance Platform Closes Cryptocurrency Bond Issuance Service

Lending platform Porter Finance on the Ethereum blockchain announced the termination of the bond issuance service. The reason was the lack of demand for services from DeFi projects.

The service allowed projects in the fielddecentralized finance and decentralized autonomous organizations (DAOs) to issue bonds on the blockchain and use them to raise funds in exchange for coupon income to holders. This long-term way of lending and investing at the same time is considered more familiar than traditional DeFi loans.

However, the developers reported theiruncertainty that in the foreseeable future there will be a noticeable influx of funds into such products. Moreover, the level of income was comparable to the indicators in the traditional finance markets. In addition, institutional investors are still eschewing the DeFi space. Therefore, Porter Finance management decided to stop supporting the service.

"Also, we no longer want to take overlegal risks of being participants in the offer of such securities. Therefore, we are no longer providing a bond issuance service and are looking for new opportunities,” said Jordan Meyer, founder of Porter Finance.

Meyer stressed that the Ribbon DAO bonds remain relevant and the company will pay investors all due fees.

Earlier, former CFTC Chairman Timothy Massad said that the cryptocurrency lending market needs effective regulation.