Access to liquid capital is an extremely important factor whether you need to pay your utility bill or buy your next meal. Assets and liquid currency are two very different things. While it is important to remain invested in assets as they have the ability to appreciate over time, some amount of liquid currency is necessary to live. Though, banks provide people with the ability to remain invested in an asset but still be able to have cash through collateralized loans.

Usually, when people have an asset, they can utilize it as a collateral for a loan. Recently, cryptocurrencies have been catapulted to a market cap worth hundreds of billions, and as a result many people now have a significant portion of their investment in cryptocurrencies. There are many projects in the works to make cryptocurrencies utilizable in day to day activities. But until those become a reality, cryptocurrencies remain an asset.

However, despite the high amount of value associated to these cryptocurrencies, most banks do not accept them as an asset that can be used for collateralized loans. On the other hand, as a large portion of the crypto community strongly believes in the hodl philosophy, many crypto investors like to hold minimal amounts of cash. There’s a clear problem here as people want to remain invested in crypto but also need cash, but the banks are unwilling to accommodate solution for this.

Introducing MoneyToken

A new project called MoneyToken has recognized the opportunity that banks have failed to fill and is now developing a platform to fulfill the needs of crypto investors who are in need of cash. MoneyToken will be establishing an extremely simple system and will allow the market to independently fill up the process of borrowing and lending on the MoneyToken platform.

• A borrower would provide a collateral in the form of cryptocurrencies. This allows the borrower to not pull out of his or her investment but still get necessary amounts of cash.
• A lender assesses whether the collateral offered is sufficient to balance the amount of risk he or she is taking by lending to the person. Since individuals could independently decide when the collateral is enough, there isn’t a need for credit checks. Risk-averse lenders could simply request an overwhelming amount of collateral.
• Once the borrower returns the money, the smart contract will process the payment to the lender and will return the collateral back to the borrower.

This system not only provides crypto investors with a means to capital that banks do not, it also allows the market to assess the degree of risk associated with crypto collateral. And given all loans will require a collateral, the need for thorough, lengthy credit score checks is waived. MoneyToken makes loans not only accessible to crypto investors, but makes the whole process of loans a lot more efficient.

Additionally, since the entire loan process is being handled by the borrowers and lenders directly, all the middlemen costs associated with a typical loan are removed. As a bonus, MoneyToken is developing its own AI-powered assistant, Amanda, to the platform’s users. This allows the platform to further develop into an autonomous network of p2p loans as Amanda will ensure obscure terms do not play any role on this platform.

TL;DR: MoneyToken is a p2p lending platform where cryptocurrencies are used as a collateral for secured loans.

Essential Links

🌐 Website: https://moneytoken.com/
💡 Whitepaper: https://moneytoken.com/doc/MoneyTokenWP_ENG.pdf
👨 ANN Thread: https://bitcointalk.org/index.php?topic=2403127.0
💻 Telegram: https://t.me/moneytoken
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