Loans Secured by CryptoAssets
Smart contract blockchain
Nika Maren - Community Manager
CoinLoan is a truly groundbreaking project. Our platform uses a unique algorithm to offer maximum choice and flexibility for our clients - who are able to act as both a lender and borrower.
Lenders deposit their fiat money using international/local bank transfers or bank cards and request loans on their own terms (repayment, interest rates etc). Lenders either manage the loans themselves, or they can let our algorithm manage the loan completely on autopilot - thereby avoiding the manual creation and continuous monitoring of loan requests. If the borrower fails to return the funds, the system will automatically liquidate (sell) the pledged crypto asset and return the funds to the lender (including the interest rate), thereby ensuring the absence of risk and a full repayment of funds.
Borrowers can deposit cryptocurrency, and create a loan application for a maximum of 70% of current market value — to preserve the borrower's crypto assets and reduce the risks caused by the high volatility of the cryptocurrency market. Borrowed fiat money can be withdrawn quickly and conveniently, receiving their crypto assets back in full once loan conditions are repaid.
CoinLoan wants to create a fiat lending platform, where cryptoassets would act as a collateral for the regular fiat loans. A person looking for money would then deposit their cryptocurrency, choose how much money and for how long do they need and then find a suitable lender, who put such offer to the platform. After repaying the loan and interests, the person would get back cryptocurrency they had deposited in full. Automatic Funds Management feature formulates the terms and conditions of the loans, and the system will automatically estimate the market environment to create orders. After repayment of loans, the system will continue creating orders. There is also no limit when it comes to the loans, as the minimum loan amount is 50 dollars, while the maximum amount and number of active loans is limited only by user's budget. When it comes to the benefits for the borrowers, there is no need to check out the credit history and prove your payment capacity. They can also close the loan at any moment by liquidating it at the current market price. The CoinLoan token will be used to pay for transactions within the platform and lending and borrowing fees. The overall design of the platform looks very good, it is easy to find any needed information.
User ReviewWrite review 5 reviews
The idea of p2p lending is not new, and there are already some successful companies, based on that concept. The main disadvantage of all such platforms is centralization - all operations are controlled by the company, while the basic idea of p2p (peer-to-peer) is the ability to conduct transactions directly with each other, without intermediaries. And the use of blockchain technology, smart contracts, offered by CoinLoan, seems to be an absolutely logical evolution step. On the other hand, the use of cryptocurrencies for exchange instead of fiat can cause problems due to their high volatility.
CoinLoan is a licensed fiat lending platform that secures and guarantees loans with cryptoassets so you can hold onto your crypto instead of selling them when you need cash. With that in mind, I'm not so sure about cryptocurrencies being the right assets to act as the safety backup for the loans, as the prices can change significantly within few days, but maybe that's also the advantage of such collateral. As a person who gives loans to others, in case someone doesn't pay you back, you may even get more money than you have gave them in the first place. To sum up other aspects of the project, it looks rather professional, the team is good, have decent programmers and developers and they seem prepared to deliver fully working p2p lending platform.
I really like the design of CoinLoan, it is neat and organised. The tokens will be used to pay the fees on the platform, so with many lenders and borrowers I guess there will be some demand for this cryptocurrency, it all depends whether or not the platform will become popular. But generally, p2p loans are becoming more and more popular and people prefer them to banks and their huge interests. Moreover, there is no need to check out the credit history and prove your payment capacity.
The project looks really good, I have to admit. But I don't think that it is a good idea. The market is too unpredictable and the prices fluctuate too much, therefore it is not safe to have some random cryptoasset act as a collateral for the loan. Someone may simply disappear with that fiat money and the other person would be left with some random coin that because of market changes become worthless.
For me the platform looks rather solid. The design is good and they transparently provide all of the necessary information. The team is young but relatively wide and consists of programmers and developers to take care of the technical part of the project. When it comes to the sole idea, I'm not sure how good would cryptocurrencies act as a collateral for loans, but as the price often raises the person who borrows money wouldn't have to worry about not getting their money back, as they may get even more with that cryptocurrency.
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