THE MONEY TOKEN REVOLUTION!
The expansion of cryptocurrency and the sudden surge of digital assets has seen many investors, entrepreneurs even individuals picking interest in the cryptocurrency space .
It is estimated that there are over 1500 cryptocurrencies in existence today and many are being created.
However, cryptocurrency cannot be said to be very effective medium of payment.
This is largely due to its steady growth in value.
The steadily growth in value of cryptocurrency has led to it being categorized as a asset.
The steadily growth in value of cryptocurrency has led to it being categorized as a asset.
Let's take a look at this, in 2009 bitcoin price was not beyond $350, 9 years down the line, its now a little below $8000/ 1 bitcoin.
This has resulted to cryptocurrency holders not wanting to release it, because they are paranoid the price might skyrocket should they sell it ....which means loosing of investment position to them.
In a situation where a holder of cryotocurrency needs funds to grow his business or buy some equipment, but doesn't have the required funds and never want to entertain the thought of selling his digital asset.
Even if he wants to go borrow , what is he going to use as a security instrument since he has only bitcoin. Considering that no financial institution will accept digital assets as a collateral.
There has not been known solution to this challenge.
This is where moneytoken comes into the mix, because the solution is a credit model in which volatile cryptocurrency assets acts as collateral while credit is granted in a stable currency.
This system allows borrowers to gain profit from their asset as the market value rises, while reducing risk to credit providers and borrowers if the market fail.
WHY MONEY TOKEN?
Money token hopes to provide a lasting solution to these challenges by managing clients risks and creating a stable lending model using cryptocurrency as collateral.
Money token lending model would use fluctuating crypto assets as collaterals for a loan provided in fiat currency or stable coin.
ADVANTAGES OF MONEY TOKEN LENDING MODEL
Loan applications are processed in split seconds.
Loan applications are processed in split seconds.
The borrower will be able to regulate the loan conditions on their own within the confines of the platform's terms.
There's no requirements for credit scoring or verification of assets.
Borrowers will have the option to deposit the collateral in various crypto assets.
There is high level of transparency in carrying out transactions.
Transparency of collateral evaluation and the fluctuation of its value over time for both parties.
There are four (4) easy steps to accessing loans on the money token platform.
Choose credit terms
Deposit collateral
Get confirmation
Get credit funds.
Deposit collateral
Get confirmation
Get credit funds.
HOW DOES IT WORK?
Let's say Mr Stone an entrepreneur needs money for the expansion of his business .
And he has a crypto asset that he doesnt want to sell.
All he needs to do is to go to the money token platform and choose a credit terms and then deposit his crypto asset.
And he has a crypto asset that he doesnt want to sell.
All he needs to do is to go to the money token platform and choose a credit terms and then deposit his crypto asset.
As soon as the application and deposit are confirmed by money token. He gets the loan immediately in a stable currency.
He will receive his crypto assets after he must have repaid the whole loan granted him , even if the asset has tripled in value .
He is able to acquire the equipment.
He didn't sell his digital assets to do that, so he didn't loose his investment position.
He is able to acquire the equipment.
He didn't sell his digital assets to do that, so he didn't loose his investment position.
It is a win win situation for Mr Stone.
A case of eating his cake and having it?
WHAT THEN HAPPENS WHEN BITCOIN RATE OF EXCHANGE DROP S?
In a situation where the bitcoin exchange rate drops , repayment of collateral ratio (RTC) of 30-70% can be set by the client.
In the event that the RTC ratio grows higher than 95% , the system automatically cashes out a part of the collateral to pay back the loan and then return the remaining collateral funds to user.
In the event that the RTC ratio grows higher than 95% , the system automatically cashes out a part of the collateral to pay back the loan and then return the remaining collateral funds to user.
LOAN TERM
Collateral ratio is from 30-50%
Minimum loan duration= 5 days
Maximum loan duration= 90 days
Minimum loan Amount= $200
Interest rate= 0.2% daily or 6% monthly.
Money token plans to initially accept ETH and bitcoin as collateral on launch of the platform ...others will be added later.
For information about token metrics visit https://moneytoken.com/doc/TokenSale.pdf
For more information please kindly visit
Wevsite https://moneytoken.com/
Wevsite https://moneytoken.com/
Telegram https://t.me/moneytoken
Author : https://bitcointalk.org/index.php?action=profile;u=1397196
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