BUDAPEST, Hungary, May 9, 2019 /PRNewswire/ -- INLOCK peer-to-peer lending platform let cryptocurrency holders to access the purchasing power of their digital assets without spending them. The platform provides a very viable alternative to selling crypto positions in case of a temporary liquidity problem by collateralizing them and taking out a loan. Of course, upon repaying the loan, customers get back their crypto in full. There is no centrally controlled interest rate, INLOCK operates under the peer-to-peer model, ensuring that the interest rates are determined by supply and demand.
Csaba Csabai, Founder and CEO of INLOCK realised that crypto assets are the perfect candidates for collateralization; no matter how volatile, or what the current exchange rate is, crypto assets have value, they can be exchanged instantly, and there is a broad consensus regarding the actual price.
"We have seen far too many examples of people selling Bitcoins to finance their short or mid-term investment goals only to witness the price skyrocket in the following days - especially during 2017. Of course, nobody is able to predict the future, but the next best thing is to keep your options open. We receive an overwhelming amount of loan requests from entrepreneurs, business owners, and traders for this very problem on a daily basis," said Csaba Csabai, Founder and CEO of INLOCK.
"Market competition creates the balance between the Lenders profit requirements and the Borrower's demand for reasonable interest rates. It beats all artificially steered models - it's all the control we'll ever need," added David Sabo, Business Development Strategist of INLOCK.
In the first 24h, an impressive amount of loans were matched successfully:
- 1220 lending contracts
- over $350K in value
- Average APR: 5.8%
The overcollateralization rate averaged at 180%, which shows that customers are ready to make educated choices in their credit requests. The most favorable APR on the platform is 8% currently.
Since the Borrower's cryptocurrency fully backs the loan, the investment of the Lenders is perfectly safe. INLOCK engages traditional investors with safe investments options offering higher interest rates than traditional bank savings. Loans are granted in USDC, the stablecoin issued by Circle combining the power of the dollar at the speed of crypto. The team is actively working on adding more currencies as collateral options and extending their reach through key partnerships with wallet service providers, exchanges and other relevant players of the industry to integrate the lending services of INLOCK in their systems.
INLOCK is a blockchain-based platform that enables cryptocurrency holders to manage short-term liquidity problems by taking a loan in stablecoins using their existing cryptocurrencies as collateral. The company was founded in 2018 by a team of fintech experts in Hungary to build up solutions for various crypto-asset based use-cases for the financial world.