CoinLoan is an innovative project designed to integrate the traditional banking system with modern cryptocurrency technology. It offers an affordable solution where users will be able to receive real money in any currency secured by crypto assets when they are in need. This will reduce the loss of possible revenue from a further appreciation of cryptocurrency and additional costs. The CoinLoan crowdsale (pre-ICO) is just a day away from launch, where the platform will be making 5 million (10%) of the total 50 million tokens available for purchase.
This fully automated project will issue loans without verification of the borrower’s solvency, application processing from lending centers, and other formalities peculiar to the traditional banking system. The loan will be processed almost instantly and issued in US Dollar, Euro, British Pounds, Chinese Yuan, Japanese Yen, Russian Rubbles, Swiss Franc, Polish Zloty, or Czech Koruna. The platform will allow borrowers to become lenders and lenders to become borrowers at any time. This system is intended to secure flexibility and loyalty within the system.
CoinLoan will accept Bitcoin, Ethereum, or Litecoin as collateral for borrowing on the platform. However, rubbing shoulders with other established cryptocurrency lenders, CoinLoan could soon introduce support for other cryptocurrency/asset collaterals as well.
According to the CoinLoan whitepaper, borrowers will be allowed to borrow up to 10-70% the value of the borrower’s crypto assets. This means that if a borrower owns 25 Bitcoins, where 1 Bitcoin is trading at $4000, the total value of the asset will be valued at $100,000. The borrower can then borrow $10,000 to $70,000. The amount of collateral and security deposit is 70% and 30% respectively. Considering the case of 25 Bitcoins, collateral will be set at 17.5 BTC and 7.5 BTC as a security deposit.
Comparatively, CoinLoan seems to be entering the market with quite the competitive edge since other cryptocurrency lenders. The lenders on this platform will formulate the terms and conditions of the loan, and the system will automatically estimate the market environment to create the orders.
The CoinLoan platform will be advantageous to the borrower since it will support popular cryptocurrency assets.