Throw
a stone at a group of people and I’ll give you great odds that it will
hit a person who is regretting not investing in bitcoin or any other
cryptocurrency for that matter when they had a chance a few months ago.
Cryptocurrencies might still be a good bet to invest on, but then it
will be difficult to replicate the kind of returns it gave in the past
12 months.
Well, cryptocurrencies are still infants when compared to traditional methods of investing money.
One
of the earliest ways to invest money was to lend it to people, friends
or relatives and collect interest on the principle supplied. Then after
that, the stock market and real estate became the go-to markets for
investors.
However,
this seemingly ancient method of peer-to-peer lending has found its way
back to the modern world with the help of a team of people who go by
the name — FintruX.
Actually,
the concept of peer-to-peer lending was never extinct. Banks use the
same concept albeit on a larger scale. There are also a lot of other
platforms who offer peer-to-peer lending services, but neither solves
the problem of safeguarding lenders while handing out unsecured loans.
What is FintruX and what issues do they want to solve?
FintruX
was developed in 2017 to create an online ecosystem which will connect
borrowers, lenders and rated service agencies directly, in a true
peer-to-peer network sense. The platform will offer start-ups and new
businesses to quick and essential capital to run their operations.
These
new organisations generally find it difficult to get unsecured loans
from the banks and other traditional lending institutions. There are two
reasons for it: Firstly, since the companies are still in their initial
stages, their finances are shaky at best, which makes banks unwilling
to approve the loans.
Secondly,
even if the loans are approved, it takes a few months to complete the
whole process of applying for loans and getting it sanctioned. This
doesn’t benefit the companies who are in a rush to get some capital.
Problems with the incumbent P2P platforms
Yes,
other Peer-to-peer lending platforms are currently available in the
market, but even they come with their share of barriers. These platforms
do serve the borrowers in a better way with a faster and easier online
application process with flexible repayment terms.
Except, since the principle is supplied through a lot of different sources, the interest rates are generally on the higher side.
Moreover,
these platforms only claim to be P2P, but on the contrary to these
claims, they involve a lot of intermediaries such as trust accounts and
other parties, which reduces their level of transparency.
Also,
in most of the platforms like this, the credit risk evaluation process
is inconsistent and leaves a lot of room for improvement, which means
that the lender has to assume all the risks.
How do they solve these issues?
The FintruX team wants to make unsecured loans highly secure by using blockchain technology.
They
are the pioneers of using blockchain in P2P platforms and are planning
to administer smart contracts to configure specialized contracts for
each borrower in real time depending on the agreed upon terms by both
parties in the transaction.
Using
smart contracts, eliminates the need for physical infrastructure,
automates the process and improves the overall lending experience and
reduces the cost too making it cheaper for all the stakeholders.
To
solve the issue of the inconsistent credit rating process, the platform
uses cascading levels of credit enhancements to improve credit
worthiness and to reduce the risks while sanctioning unsecured loans.
This technique guarantees the lender that the borrower will honor his
obligation by over-collateralization
as additional collateral, local third — party guarantor,
cross-collateralization as insurance, and FintruX ultimate protection
reserve
FintruX
will reserve 10% of every money lent transaction to create a buffer
level. So, if any of the borrowers defaults on his repayment, the lender
will be protected by this buffer level provided by the platform.
Due to the improved security, even borrowers can get favorable interest rates.
All
the transactions on the platform to the agencies, guarantors and
FintruX network, whereas the rewards and late charges will happen
through the FTX token.
About the ICO (https://www.fintrux.com)
The token pre-sale will begin on 7th January and is scheduled to run until 21st January.
Investors will be able to exchange 1 ETH for 1650 FTX tokens. The min. transaction amount is 1 ETH.
The presale has a soft cap of 5000 ETH. During the pre-sale, investors will get 10% bonus on their investments.
After
the pre-sale concludes the token sale will start on 7th February. The
exchange rate during this period will be 1 ETH for 1500 tokens. The hard
cap for the token sale is set at 75 million tokens. Investors will also
be awarded bonuses during this period in the range of 5% to 0.6%.
75%
of the total tokens issued are available during the crowd sale, whereas
10% each is reserved for the founding team (with lock-in period) and
the FintruX reserve.
The
funds generated during the ICO will be used to develop the project
further and the remaining funds will be directed towards marketing and
run the operations.
Our Opinion
The core team at FintruX has over two decades of experience in the securitization sector and asset based management.
Their
platform does provide a lot of benefits to all the parties and
stakeholders over the incumbents as we stated earlier in the article.
This can help the platform to get good adoption at the early stages
itself.
Furthermore, they have uploaded wireframes for their platform and a github model for investors to infuse trust in the project.
All
things considered, I would suggest any investor looking to invest in
the blockchain technology to give this project a serious consideration.
FintruX Network makes it easy for small businesses to quickly secure affordable loans with no collateral, in any currency.
The three main competitive advantages of FintruX are:
Credit Enhancements :
By applying credit enhancements, FintruX Network will virtually
neutralize the lender’s credit risk and, in the case of a default,
provide cascading levels of insurance to cover any possible loss. With
risk reduced, lenders have peace of mind and the interest rates for
borrowers is lowered.
No-Code Development :
A unique smart contract is automatically generated and deployed by
FintruX Network for each approved loan in real-time to provide
unambiguous, immutable, and censorship resistant records where no
arbitration is required. This is possible with our no-code development
technology.
Open Ecosystem :
In addition to simplifying the loan application process via instant
matching, FintruX Network also provides borrowers with post-funding
self-serve administration options and access to third party rated
agencies.
Tokenization :
With the exception of the collateralization pools and currency being
financed, inside the FintruX Network everything is tokenized.Agencies,
guarantors, and FintruX Network are all being paid in FTX Token.
Rewardand late charges toborrowers are paid in FTX Token as well.FintruX
will continuously sell collected tokens back to the participants to
finance the operation and provide liquidity.This creates a token economy
for the limited
supply of FTX Token.
supply of FTX Token.
Fore More Details and ICO
Website : https://www.fintrux.com/
Telegram : https://t.me/FintruX
WhitePaper : https://www.fintrux.com/home/doc/whitepaper.pdf
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