https://moneytoken.com/
With the huge increase in demand for cryptocurrency, more credit solutions are needed in this industry. MoneyToken is a new platform in development that will offer loans that are backed by cryptocurrency holdings. MoneyToken will utilize blockchain technology for real world use with their loan platform. Many times, people may need funds for immediate use, but do not want to sell or liquidate their positions in cryptocurrency. With MoneyToken, people will have the option not to sell and acquire a loan instead. This way, if their cryptocurrency holdings increase in value during the time of the loan, they will still benefit from the value increase of their portfolio. It can also be more convenient than selling your portfolio and then buying it back later.
The type of system that MoneyToken will use has several advantages. One is that the loan can be confirmed in just a few minutes. Additionally there is not a need for credit scores or asset verification. Another feature is customers can use the platform to regulate the conditions of the loan. There will be the ability to deposit multiple different cryptocurrencies to help stabilize the collateral. Blockchain allows for security and transparency in deposits along with evaluation of collateral.
The steps to getting a loan include first selecting the terms of credit, then making a collateral deposit, followed by confirmation and receiving of funds. The interest of the loan may be paid in fiat currency or cryptocurrency. One possible beneficiary of using MoneyToken might be a Bitcoin miner. The miner might need funds to expand the operation, but they also might want to wait for higher prices before selling their Bitcoin. Using MoneyToken, a loan could be secured that allows the Bitcoin miner to expand the business and still hold the coins benefit from price increases. In the event that the collateral value greatly decreases during the time of the loan, the borrower may need to add additional collateral or pay off the loan.
The MoneyToken platform uses what they call Amanda. This is an artificial intelligence assistant. It will be used to help automate loans on the platform. Amanda uses an AI algorithm for deep learning, and can then offer predictive actions for users. Amanda helps to reduce fees and middlemen during the loan process.
The MoneyToken platform uses smart contracts on the Ethereum network for securing the loan terms. The funds used for the collateral will utilize multi signature wallets. This will require up to four signatures. One will be the lender, one is the borrower, and one or two are the arbitration service used by MoneyToken. Borrowers have the option to repay loans partially or in full ahead of schedule. The various loan parameters include collateral currency, loan currency, loan amount, interest rate, duration of the loan, and the repayment to collateral ratio. Ethereum and Bitcoin are the two coins that will be accepted as collateral when the platform launches. More will be added as time goes on and the platform develops more. I can see this type of loan platform in large demand in the future. If you would like to learn more about MoneyToken, please refer to the links that I have provided below.
Whitepaper: https://moneytoken.com/doc/MoneyTokenWP_ENG.pdf
My bitcointalk profile link: https://bitcointalk.org/index.php?action=profile;u=1420457
