MoneyToken is building an ecosystem for p2p lending where cryptocurrencies can be used as collateral. This not only allows the existence of a collateralized loans that banks do not support, but also creates a loan system free of middlemen costs.

Read on to learn about this project’s strengths.

MoneyToken SWOT Analysis

SWOT analysis sheds light on the potential of a project.

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MoneyToken is trying to completely remove all associated middlemen service in the lending process. To achieve that, it’s developed its own platform AI-powered assistant (named Amanda). Amanda will guide borrowers and lenders through the process and will ensure the process is carried out properly on both the borrowing and lending side. MoneyToken is merging AI and blockchain technologies to create an ecosystem to create the next age of loans. This would have been difficult to achieve since people generally prefer peace of mind and would prefer to borrow from a bank, at a premium cost, rather than trust a new platform’s offering. MoneyToken is starting by targeting a very particular market that is not just open to risk, but also has no alternate loan options from banks.

MoneyToken is targeting crypto investors and this, along with its usage of AI in the platform, is its key strength. Usually, penetrating the market with a revolutionary concept with respect to anything in the financial sector can be hard. But MoneyToken’s target market has no other option and that’s why they’d utilize MoneyToken.

Crypto investors are willing to utilize a new platform for loans collateralized with their crypto holding as neither banks nor any other trusted channel gives them this option.

Since a large portion of the decentralize-everything community cumulatively believe that the financial sector is too centralized and a lot of lucrative opportunities remain untapped in decentralizing it, a lot of teams in this sphere target p2p lending. P2p lending is one of the most prominent concepts targeted by blockchain start-ups. So, it’s easy to say that MoneyToken is entering a tight market.

However, MoneyToken is able to differentiate itself since the platform is only designed for collateralized loans. Additionally, it’s going beyond just making an ecosystem where people can take loans from others. MoneyToken is providing an AI solution to make sure the process is governed by individuals whose understanding of the processes involved in the loan are reinforced by an AI-powered assistant.

In tight markets, differentiation is key and MoneyToken has managed to come up with a proper set of features to differentiate itself from the crowd.

Loans are the cornerstone of the financial industry, which is an industry worth trillions of dollars. MoneyToken is offering a means to provide efficiency, cost-savings, and time-savings in this massive market. And MoneyToken does not need to compete with the established financial firms in its early days as it’s targeting crypto investors.

Interestingly, even though it is targeting a specific market where banks do not tread, crypto market cap is worth hundreds of billions and this is already plenty of open opportunity for a start-up.

MoneyToken is developing a platform that requires the establishment of both supply and demand. For the platform to function, crypto investors must utilize it for loans and this will be the easy part to fulfill. MoneyToken will need a supply of lenders willing to accept collateral in cryptocurrencies. This might be challenging on the onset but MoneyToken’s team comes from industries that require a strong connection with high net-worth individuals. The advisory board consists of some of the most prominent influencers in the crypto market. These factors will be extremely valuable.

MoneyToken’s team and advisors are likely to leverage their network to draw in the supply of lenders. It is likely that the platform will become utilized for short-term loans as lenders could expect an overwhelming amount of collateral in the short-term while also being able to somewhat predict the direction of the market to properly assess risk.

Wrap-Up: By utilizing AI, MoneyToken’s team is utilizing technological differentiation to stand out from the crowd of projects targeting p2p lending. Additionally, its team powerful backgrounds, reinforced by influential advisors, will allow MoneyToken to counter the challenges that comes its way.