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What is CoinLoan?

CoinLoan is an innovative project that combined traditional lending banking system and modern cryptocurrency technology. Their team has studied the problems of interaction between the fiat and virtual currencies. There is an invisible wall between them at first glance, which cannot be overcome. Cryptocurrencies – Bitcoin, Ethereum and similar – are increasingly attracting attention due to their rapid growth and stability. But a person often needs fiat money that is more convenient for settlements.

Idea behind CoinLoan

Having carefully analyzed cryptocurrencies and their growth in relation to fiat money, they came to the conclusion that this market lacks lending vehicles.

 The most popular way to get a fiat currency for a cryptoasset is to sell the asset on the exchange. This is economically unfeasible, since the value of cryptocurrency can significantly increase literally within a week, after which the holder will lose an impressive amount.

The CoinLoan project offers an alternative. Using their system, a cryptocurrency holder can get a loan in fiat money on the security of his/her cryptoasset. Before the end of the loan period, the security deposit will remain in the protected CoinLoan system. Once the loan and the interest are paid within the agreed period, the pledged asset will be returned to the borrower in full.

The CoinLoan platform will provide an opportunity to instantly issue virtual or plastic payment cards supporting Apple Pay¹ and Samsung Pay².

Using Apple Pay and Samsung Pay, you can make payments around the world where contactless payment is enabled. It is convenient and beneficial, as the user of such services does not pay additional fees.

  • CoinLoan will accept the following collateral for the loan since its launch:
  1. Bitcoin
  2. Ethereum
  3. Litecoin
  4. Ripple
  5. Monero
  6. Zcash
  7. Dash

 

  • Alist of fiat currencies in which loans will be issued immediately after the released is defined
  1. USD
  2. EUR
  3. GBP
  4. CNY
  5. JPY
  6. RUB
  7. CHF
  8. PLN
  9. CZK

 

Both lists will expand as the platform develops as they are going to cover all popular fiat and cryptocurrencies.

 

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How CoinLoan works

CoinLoan machanism

CoinLoan machanism

Let’s review an application example from the part of the borrower for a better understanding of how the CoinLoan system works.

The user has 25 Bitcoins, and he/she needs a fiat currency. He/she does not want to sell the cryptocurrency at the exchange, as the rate is skyrocketing.

At the current rate, 1 Bitcoin is worth 4,000 USD, so 25 Bitcoins are worth 100,000 USD.

25 BTC x 4,000 = 100,000 USD

This amount can become a collateral for a loan deal. However, according to the CoinLoan rules, one can get a loan only in the amount of 10-70% of the real value of the borrower’s cryptoasset (LTV).

Accordingly, the user can borrow no more than 70,000 USD. This LTV restriction is introduced to reduce the risks associated with the cryptocurrency volatility.10% from 100,000 USD = 10,000 USD

70% from 100,000 USD = 70,000 USD

Let’s consider a case with a maximum amount and a deposit of 25 BTC at a rate of 4,000 USD for a period of one year. The amount of collateral is 17.5 BTC (70%), 7.5 BTC (30%) is a security deposit.

Three scenarios for the entire duration of the contract are possible:

  1. BTC market value will fall;
  2. BTC market value will grow;
  3. BTC market value will not change.

 

  • What to do if the Bitcoin price drops to 3,200 USD and the value of the pledged asset amounts to 80,000 USD:
  1. Repay the entire loan amount of 70,000 USD + % and get 25 BTC back.
  2. Replenish the collateral with the cryptoasset in the amount of 6.125 BTC to restore the ratio of the loan amount and the value of the collateral (LTV) to 70%.
  3. Repay part of the loan in the amount of 14,000 USD to reduce the loan principal and restore

the ratio of the loan amount and the value of the collateral (LTV) to 70%.

  1. Repay the loan in full through selling part of the collateral. In this case, the system will sell about 22 BTC, and the balance of 3 BTC will be available for withdrawal.

 

  • What to do if the Bitcoin price grows to 5,000 USD and the value of the pledged asset amounts to 125,000 USD:
  1. Pay the entire loan amount in the amount of 70,000 USD + % and get 25 BTC back.
  2. Withdraw the excess part of the collateral in the amount of 5 BTC or get an additional loan secured by this amount. The remaining 20 BTC will be retained as collateral.
  3. Repay the loan in full through selling part of the collateral. The system will sell about 14 BTC, and the balance of 11 BTC will be available for withdrawal.
  4. If the loan is not repaid by the due date, the borrower will be able to pay only interest due and refinance the loan.

 

  • What to do if the Bitcoin price does not change and remains at 4,000 USD:
  1. Repay the entire loan amount of 70,000 USD + % and get 25 BTC back.
  2. Repay part of the loan to reduce the loan principal and withdraw the excess part of the collateral.
  3. Repay the loan in full through selling part of the collateral. The system will sell about 17.6 BTC, and the balance of 7.4 BTC will be available for withdrawal.
  4. If the loan is not repaid by the due date, the borrower will be able to pay only interest due and refinance the loan.

 

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Team

CoinLoan team

CoinLoan team

CoinLoan team

CoinLoan team

CoinLoan advisor

CoinLoan advisor

 

ICO Details

Token:                  CLT

Price:                   1 CLT = 2 USD

Platform:             Ethereum

Accepting:           BTC, ETH, LTC, Fiat

Soft cap:              3,000,000 USD

Hard cap:            56,000,000 USD

Started on:          26-11-2017

Ending on:          14-02-2018

 

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Roadmap

The CoinLoan project roadmap consists of 7 stages, the implementation of which is scheduled for 3years. The first stages have already been implemented.

In mid-2018, CoinLoan will be launched in Europe and the CIS. The system will be modernized and improved in the course of the year. Mobile apps for iOS and Android will be created, which will increase the loyalty of existing users and attract new ones.

In 2019, CoinLoan will begin to conquer the markets of other countries

2016 Q4

Generating the idea. Evaluating the market and development potential.

2017 Q1

Launching the development.

2017 Q3

Preparing for the ICO. Performing the Pre-sale.

2017 Q4

Holding the ICO. Expanding the staff. Developing the company’s legal structure. Obtaining the

required license.

2018 Q2

Completion of developing the platform core. Official launch of the platform.

2018 Q3

Developing mobile apps for iOS & Android.

2019

Licensing and entering the Asian market. Developing API to integrate large financial institutions.

 

 

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