Block Earner, an Australian fintech, says the fall of Terra Luna in May has led to “positive surprises” for its business as investors begin to find their way to the low-risk crypto yield products they offer.
Speaking to Cointelegraph, the company’s Managing Director, Apurva Chiranewala, revealed that the company has already seen a wave of investors. seek double-digit returns but now wants a “less risky version” of those returns.
“Since the risks have increased dramatically for these returns, these guys have actually started engaging with us because we look like the lower risk version of these double-digit return products.”
Prior to their collapse, crypto lending platforms such as Celsius and Anchor Protocol offered annual percentage yields (APY) of up to 20% for users who locked their digital assets with them.
Block Earner is a blockchain powered fintech company that provides access to yield-generating products related to cryptography. Still, Chiranewala explained that the platform is for those who want exposure to the crypto markets but have a lower appetite for risk.
Its Gold Earner and USD Earner products are currently generating single-digit returns.
Data shared by Block Earner with Cointelegraph shows that the Terra Luna fiasco coincided with an increase in pullback events in early May and again in mid-June due to falling Celsius. However, there has been a steady return to normal levels since.
Cash deposits in Australian dollars (AUD) also remained stable from April to July, while the company’s user base grew by an average of 15% month-on-month.
Chiranewala also said that over the past few weeks he had seen a “high degree of interest» institutional investors, including hedge funds, venture capital (VC) and pension funds (retirement funds).
“We are almost forced to simultaneously create institutional products because the interest in this space is enormous.”
“There are VCs with treasuries, there are hedge funds, there are private funds […]and then there are super funds that have a mandate to deploy a very small portion of the portfolio into high-yielding assets,” he added.
Chiranewala admits that the company has not been entirely immune to the crash in the crypto markets. Block Earner had to cut user acquisition marketing spend.
“In the environment we’re in right now, it makes very little sense for us to go to market and acquire users. So we’ve stopped, we’ve actually backtracked a lot on our marketing strategy.
“You naturally see a bit of a smoother growth trajectory, as opposed to a steeper curve, you know, that increases week by week,” he said.
Earlier this month, a Coingecko report said decentralized finance (DeFi) market capitalization fell 74.6% from $142 million to $36 million in the second quarter, mainly due to the terra collapse and its stablecoin TerraUSD Classic (USTC) in May.