Cryptocurrency Lenders Bite Back At ₿itcoin Bear Market With Record Volume

Cryptocurrency loans continue to capitalize on the longest bear market in ₿itcoin history, with one company generating $630 million in its first six months.

Records Not REKT

Launched as a mobile app in July 2018, the Celsius Network reported the statistics in an update February 4.

The app has seen 40,000 downloads, $50 million in coin deposits and paid out maximum interest of 7.1 percent, CEO Alex Mashinsky revealed.

“One of the most surprising trends we saw during 2018 was the resilience of our HODLer community; despite BTC and ETH losing half of their value during the second half of 2018 we saw 184 out of 191 days in which deposits outnumbered withdrawals,” he wrote.

Celsius’ performance and client habits touch on a trend which has continued since last year – ₿itcoin HODLers are accumulating, not trading.

While this habit has caused anxiety for some market participants such as miners, as Bitcoinist reported, the crypto consumer loans sector has seen a surprisingly strong boom.

“We did not liquidate a single loan and we did not have a single default from any of our borrowers. We did not lose a single crypto asset or dollar from all our lending activities in 2018,” Mashinsky added.

Loans Meets Options Trading

Instigating loans with cryptocurrency as collateral provides a potential bonus for investors whose crypto holdings would otherwise lie dormant or gradually lose value in a bear market.

Starting out with only a few well-known names such as Bitbond, the market has grown rapidly with the emergence of various projects catering to itchy HODLers.

InLock, another startup new to the space, this month launched an additional product opening up crypto loans to options trading.

Cryptocurrency lenders bite back at ₿itcoin bear market with record volume

Csaba Csabai, Inlock CEO

Dubbed ‘Superposition,’ executives plan for the feature to act as a value preservation tool. Its release coincided with that of the Inlock Base Index, a mechanism for “protecting” the exchange rate of the company’s native ILK token, CEO Csaba Csabai explained to Bitcoinist.

What do you think about the cryptocurrency loan sector’s growth? Let us know in the comments below!

Images courtesy of Shutterstock

Published at Wed, 06 Feb 2019 22:00:43 +0000

July 29, 2017

Nametoken ICO Launching August 1st Offering Domain Name Investment Platform

The Nametoken ICO will create a decentralized domain name ecosystem and will launch an ICO on 1st of August 2017. 90% of the tokens will be made available for investors.

[Note: This is a sponsored article.]

Nametoken (NAT) which aims to provide a platform for investment in Internet domain names is set to begin their crowdsale on the 1st of August. It will last until September 30, 2017. The team behind the project have a domain name background with over 20 years experience both in the domain trading business and in developing applications.

The company’s founders, Frank Menze and Jens Peterssen have previously traded domains worth several million US Dollars. Furthermore, they have successfully launched e-commerce projects that have generated several million US dollars in sales.

During the ICO, NAT tokens will be available for purchase with bitcoin, Ethereum, or Litecoin. It is recommended that investors use either Mist, MyEtherWallet, Metamask or Parity to receive purchased tokens.

Domain Name Marketplace

Nametoken’s Ethereum blockchain-based platform will enable users to buy and sell domain names securely and efficiently. All transactions between buyers and sellers are handled through smart contracts, allowing for fast automated payments and fulfillment. Because the platform is decentralized, users will realize significant savings on transaction fees typically associated with buying and selling domain names.

Users of the platform will be able to monetize their portfolios and earn Nametokens by registering, listing, buying, selling and parking domain names. The real ‘secret weapon’ in Nametoken’s arsenal, however, will be their proven domain appraisal algorithm which, when combined with user generated data, will mean only interesting and relevant domain matches will be shown to domain buyers.

Nametoken Exchanges

The Nametoken team cannot guarantee exactly which exchanges the tokens will be traded on once the ICO has ended, however, they have confirmed that they are currently in negotiations with multiple exchanges. The FAQ section on Nametoken’s website does say that the token will definitely be listed on at least several exchanges within 8 weeks after the ICO ends on September 30th.

Buying the tokens on an exchange will be the only option for U.S. citizens who are not allowed to invest in the ICO due to U.S. law.

Token Distribution

As can be seen from the chart above, taken from Nametoken.io, the sale and distribution of the tokens will be very fair with the team keeping just 7% of the available tokens, allowing 90% to be made available to investors. The remaining 3% will be earmarked for advisory and legal matters. This sets Nametoken apart from other less fair ICO launches in which a far greater percentage of the initial tokens were kept in reserve for the company and its founders.

Revenue from the tokens and trading of domains will also be distributed according to the “Intended use of revenue” graph (shown above). It’s a very keen commitment to transparency in their operation and as can be seen; 40% will be reinvested back into Domain investment, with 30% going to ongoing development and 18% to marketing.

Will you be taking part in the token sale? Are you currently a domain name investor? Let us know in the comments below.

Images courtesy of Nametoken, Shutterstock

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