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Author Topic: Cryptocurrency-backed loans  (Read 234 times)
BitHub.pl
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November 12, 2017, 11:57:46 AM
 #1

Our product will initially be a 12 month term loan with interest only payments throughout the loan and a balloon of principal at the end. Payments can be made in dollars or crypto. For Bitcoin we will lend 40% of the value in USD and 35% of the value for Ether – says Zac Prince, founder at BlockFi.com in Bithub.pl’s #SundayInterview.

You offer loans in USD backed by BTC or Ether. Who are you targetting it at? Investors, companies, individuals?

Zac Prince: We will support individuals, corporations and institutional investors. Initially only US based borrowers but we hope to expand internationally in 2018. Our minimum loan size will be $10,000.

How does it work in detail? How much do you need to bring in as collateral, how much can you loan and how high is your interest?


ZP: The product will initially be a 12 month term loan with interest only payments throughout the loan and a balloon of principal at the end. Payments can be made in dollars or crypto. For Bitcoin we will lend 40% of the value in USD (so 40K USD secured by 100K in BTC) and 35% of the value for Ether. Most of our borrowers are concerned with not triggering a taxable event which is one of the reasons why we are starting with a conservative loan to value ratio. Interest rates will be between 10–15% depending on the size of the loan and type of borrower.

Full interview on https://bithub.pl/english/sundayinterview-cryptocurrency-backed-loans/

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AT101ET
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November 12, 2017, 01:36:29 PM
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How would this work exactly? I remember there was a user on here who borrowed some BTC for their physical coin project (CyptoVest) but then when the time came to pay the loan back the price per BTC had skyrocketed making the loan much more difficult to pay back.
I get sceptical when I see these ventures. I think the best way to go about it is to agree on a fixed value. Say a loan of $10,000 was taken out for a one year period. The loan should be paid back as $10,000 in real value in either FIAT or BTC at the market rate at the time when the loan is due.
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January 05, 2018, 04:49:13 PM
 #3

Hi.
I instantly have a few questions. First of all, haven’t seen any references to the founders and the team working on the project. Where can I find out more?

Also, the platform providing very similar services has made an announcement recently:
https://bitcointalk.org/index.php?topic=2695054
They are planning to launch in Q1 2018. Are you aware of them, or do you know any other projects with the same working model? What's your opinion on them, and how are you different?
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January 05, 2018, 11:10:45 PM
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How do you differ? Better yet, how are you BETTER than ETHLend or SALT?

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January 11, 2018, 09:36:22 PM
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Despite the missing founder info, what about the business model:
User has crypto assets (1) and needs money now (2), but doesn't want to sell his crypto assets (3). -> seems like a limited market if all 3 conditions need to apply
If condition (2) is removed, there are other choices: Instead of borrowing money for 15% interests, he could just lend his assets for similar or higher % interests via lending bots for Poloniex etc. -> so why pay instead of getting paid?
shoha
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January 19, 2018, 01:11:02 PM
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How do you differ? Better yet, how are you BETTER than ETHLend or SALT?

Looks like project is dead
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