MoneyToken is an innovative concept for the Financial System

sunnysideupfang (55)in #bitcoin • 6 years ago

The invention of blockchain technology is bringing new ideas and innovations in almost every aspect of our daily life. Its creating new opportunities for traders, investors and innovators, opening new avenues of doing business and adding to an individual’s wealth. MoneyToken is a blockchain enabled platform that is going to revolutionize the financial ecosystem. We all need to borrow money at some stage to meet our various needs such as to buy a new car or to invest in something that is surely going to be profitable within a certain time frame.

The traditional method of borrowing money involves so many formalities, the lending institutions like banks would have a look at our credit score and then would require a collateral without which borrowing money is almost impossible. In the current banking system, a collateral has to be an asset with proven value like a property, gold, bonds or shares. Apart from the requirement of a physical collateral, there are so many other hassles involved in the process which include visible and hidden charges, commissions of the middlemen and so on. The process is lengthy and to some extent non-transparent. With this system, banks get the biggest benefit and normal people get the short end of the stick.

The New Way

MoneyToken has come up with an absolutely new and innovative idea, that is borrowing money against the cryptocurrency used as a collateral. One thing has been established over the time that cryptocurrencies have gained the value by many folds within a short period of time but the problem is the investors have to wait to benefit from the growth in the value of their investment and that is only possible by selling their crypto assets otherwise they need to hold on to it.

MonyToken will provide a blockchain backed platform where the crypto investors can borrow money from individual lenders against the current value of their cryptocurrency and when they repay the loan they get back their collateralized cryptocurrency no matter how much it would have grown in value by that time. This platform will eliminate the unnecessary hassles attached to the traditional borrowing from the banks and it doesn’t matter who is the borrower and from which part of the world, no background checks and no credit history required, the only thing matters is the collateralized cryptocurrency.

With MoneyToken, we get a new way of getting loans where the money we get is comes directly from lenders. Because the banks that were in middle of the process are removed, the loan process becomes faster. Faster does not always mean insecure because MoneyTokens smart contracts make sure the loan process works exactly as it should. Once a person has returned the loan, the collateral is automatically returned in full. You get your loan and you get to keep your cryptocurrency investment as soon as you return the loan. Another benefit of banks and middlemen being removed is that the process comes at a lower cost. Banks add an extra layer to the loan process since the money is just coming from a lender. By removing the extra layer, MoneyToken makes loans cheaper.