MONEYTOKEN: UNVEILING THE USE OF CRYPTOCURRENCIES AS COLLATERAL FOR LOAN

sholex00 (32)in #blockchain • 6 years ago (edited)

Asset, as fascinating as it may be, can sometimes be frustrating especially when the owner is unable to utilize it. Assets in the recent time, has been known to be in the form of properties like land, estate, and even shares. But with the birth of new technologies, assets now exist in form of digital ; cryptocurrency.
Cryptocurrency is a digital form of currecy which makes use of cryptography. It serves as a means of trading and investment in digital market. It has blockchain as its integral part which allows a decentralized transaction. It has overtime shown a reasonable increase in value and as time goes on, it will still continue to be more prominent thereby making people to ignore the legacy money services and embracing the new financial system of blockchian technology.
However, rather than this digital currency being applicable for payment, it behaves as asset other than currency. Its holders are not encouraged to trade or sell them because once do, they will lose their position as investors on that cryptocurrency platform. It is been rendered to be more of an investment module other than also being an exchange for goods and services. Apart from being use an exchange for goods it should be capable of being used as a collateral for loan! Wow! that sounds amazing and more fascinating but there has not been a platform to access that.
To unaveil the above and some other treasures of cryptocurrency with a high degree of efficiency, Moneytoken has appeared.
Moneytoken is a credit model created to combat the problem of underutilization of cryptocurrency. It is a platform which will allow the use of volatile assets like cryptocurrency as collateral for loan without the user losing his position as an investor. It has a basis of the decentralized, security and transparency of blockchain technology.

It will get rid of all intermediaries in loan system and loans will be confirmed within seconds. There will no requirement for the verification of assets since the value of all assets have been made public and there will be transparency in credit terms. The loans will be offered in form of a stable currency and after the payment of the loan, the collateral will be returned to the owner.
Moreover, there occurs fluctuation in the exchange rate of cryptocurrency. When the exchange rate drops, a repaymey to collateral ratio of 30% to 70% can be set up by the client. There are also privileges of increasing the amount of collateral with additional amount of cryptocurrency, payment of loan before scheduled time, part payment of loan before scheduled time is possible, borrower can extend loan by making additional deposit, and can pay loans by selling part of the collateral at the current market price. There is the opportunity of becoming a lender, and users will be able to purchase and exchange cryptocurrency assets and fiat funds. There will also be the opportunity of liquidizing collateral incases of fall in collateral value.

How do you get a cryptocurrency-backed loan at Money Token?