Home Technology Virginia Fairfax County Pours $70M In Crypto Loans As Investment

Virginia Fairfax County Pours $70M In Crypto Loans As Investment

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Virginia Fairfax County Pours $70M In Crypto Loans As Investment

The crypto winter has had more devastating effects on some crypto lending platforms. There was a lot of struggle by most loan companies to escape liquidation. Their turbulent waves created distrust, loss of hope and funds for many investors.

In the history of the crypto lending space, instability and tremors are linked to the collapse of the algorithmic stablecoin of the Terra ecosystem. This was closely followed by the fall of the LUNA token, which recently morphed into Luna Classic.

The outcome of the event catalyzed the emergence of the crypto winter which led to a massive loss of funds. This situation has spread like a widespread fire to the entire crypto space. As a result, almost all cryptocurrencies have lost significant percentages of their values ​​since the start of 2022.

Some lending platforms that offered high interest took the worst hit. Three Arrows Capital (3AC) initially experienced a downturn, creating contagion for others. Voyager Digital later followed by declaring insolvent, followed closely by Celsius Networks.

All the chaos with the cryptocurrency lending industry doesn’t put an end to Fairfax County Retirement Systems’ plan. The Fairfax County Pension Fund has been granted permission to engage in yield farming. The permission would lead the pension fund to invest $70 million in two different crypto lending platforms.

Recent Companies to Enter the Crypto Lending Landscape

A month ago, two pension systems announced their $35 million investment in Parataxis Capital’s Digital Yield Fund and VanEck’s new Financial Income Fund. The retirement systems are the Fairfax County Police Officers Retirement System and the Fairfax County Employees Retirement System.

Katherine Molnar, director of investments for the Fairfax County Police Officers Retirement System, commented on the recent decision. Molnar said the fund gained about 350% in its initial market investments. The executive believed that there would be a positive change and that technologies with robust strength and innovation would strive.

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

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

The history of investing in the digital asset space for the administrative region dates back to the past three years. The Virginia Police Department had also invested part of its pension fund in bitcoin and blockchain technology. This recorded the initial dip in virtual currency investing.

Virginia Fairfax County Pours $70M In Crypto Loans As Investment
After Weeks of Positive Price Action, Crypto Market Enters Red Zone | Source: Total Crypto Market Cap on TradingView.com

Director Jeff Weiler had remained steadfast in the face of the volatile nature of virtual assets. He argued that every investment has its associated risks. However, he mentioned that getting involved in cryptocurrencies offers massive rewards for investors.

Featured image from Pexels, chart from TradingView.com

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