Porter Finance Platform Closes Cryptocurrency Bond Issuance Service

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The lending platform Porter Finance on the Ethereum blockchain announced the termination of its 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) issue bonds on the blockchain and use them to raise funds in exchange for a coupon return to holders. This long-term way of lending and investing at the same time is considered more familiar compared to traditional loans in the DeFi field.

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 that in the traditional finance markets. Additionally, institutional investors are still shying away from the DeFi space. Therefore, Porter Finance management decided to stop supporting the service. 

“We also don’t want to take on any morelegal risks of being participants in the offer of such securities. That’s why we are discontinuing our bond issuance service and looking for new opportunities,” said Porter Finance founder Jordan Meyer.

Meyer emphasized that the Ribbon DAO bonds remain valid and the company will pay investors all the rewards due.

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