Crypto Lending Platform Partners With Construction Company

[bbc.reporter]

I am not certain on the terms of this, however, this offer might be good to accept on December before the bursting of the bubble only if the market follows the previous cycles hehehe.

In any case, this is a good offer for holders who do not want to sell their coins for fiat. I speculate that cryptolending will be one of the biggest services in the cryptospace. Loans with illiquid but valuable assets similar to NFTs will be the next big market.



Homeowners Offered Crypto-Backed Loans to Finance Home Improvement Projects

Crypto-asset lending firm Pledge has joined forces with 247pro.com, a construction estimate and management platform, to offer cryptocurrency holders among homeowners quick access to home improvement loans they can take against their digital coins. The two companies have recently signed a partnership agreement.

Read in full https://news.bitcoin.com/homeowners-offered-crypto-backed-loans-to-finance-home-improvement-projects/

[SFR10]

In any case, this is a good offer for holders who do not want to sell their coins for fiat.

Am I the only one that's not impressed with this partnership? I've never tried using such platforms before, but AFAIK, there's no "real" difference between using them and other lending platforms that offer crypto-backed loans!
^{- Not sure if I'm missing something but apart from their fees, one of their disadvantages is being tied to home improvements only.}

[bbc.reporter]

@SFR10 Agreed. But I am beginning to see other possbilities in crypto backed lending in the cryptospace, however. I reckon that it might bring liquidity to the illiquid NFT art market for collectors who have a difficulties selling their NFT or those collectors who do not want to see their NFT but needs the cashflow.

[magneto]

I speculate that cryptolending will be one of the biggest services in the cryptospace. Loans with illiquid but valuable assets similar to NFTs will be the next big market.

You're absolutely spot on for this.

Expect to have increasingly complex services and formulas to calculate the value of the collateral and how much loan amount can be given out to be developed. With the rise of alternate holdings to BTC there will likely be a range of collateral that these services have to tailor for.

But this is a positive development for sure and hopefully homeowners who are also crypto adopters can find some way to leverage this offer to their advantage.

[Darker45]

There will surely be growth in crypto-backed loans in the years to come. As a matter of fact, we are already seeing its rise even in DeFi. But I guess the risk is still very high at this point. Clear-cut rules, security mechanisms, regulatory protections, and so on are still probably very weak at this point. This early, there have already been instances when crypto loans on smart contracts failed.

Moreover, I guess collaterals should also be carefully chosen. We have seen how certain coins lose value so swiftly. This must be the same fate with NFTs. Especially with long-term loans, it would be wise to just limit collaterals to Bitcoin and probably a handful of top altcoins. But, again, volatility would still be an issue.

[leea-1334]

Ya, one risky industry partnering with another risky industry? I actually really wonder how lending platforms keep popping up time after time when it is clear that during bubble bursts most lending models fail when all the borrowers default. Crypto especially seems even worse off because people borrow money based on the price of crypto and during crashes well,,, lenders lose.