MoneyToken in Broad Strokes
It’s frustrating how cryptocurrency, is still not used as a currency in exchange for most of the real-life goods and services that we’d like to purchase. MoneyToken has arrived to try to assuage that problem until that day comes. Find out how smart loans here!
Have you ever imagined a situation where bitcoin or Ethereum is the only currency you have available? Not yet? Me too, and so do a lot of other companies who have yet to adapt to the most disruptive technological development of the past decade.
Cryptocurrency hasn’t quite reached a level of mainstream adoption that it can function as a real currency to exchange for mundane things such as pizza from Papa John’s. Recognizing the need for liquidity in cryptocurrency market players, MoneyToken took on the job of providing an innovative crypto-asset backed credit system. It gives borrowers a chance to get a taste of their hard-earned money now rather than wait for crypto’s mainstream adoption.
MoneyToken takes cryptocurrencies as collateral for loans in exchange for liquid funds such as fiat currency and stablecoin. This enables borrowers to spend their cryptocurrency in stores that haven’t yet adopted it as a mode of payment. It features a fixed term loan repayment arrangement wherein the amount that the borrower has to payback does not change even if the value of the collateralized cryptocurrency increased exponentially. This opens up avenues for cryptocurrency professionals, businesses, and enthusiasts to spend their virtual coins in real-world settings.
This could potentially mean different things to different people. For investors, the fixed terms might be inviting. For miners, the ability to use cryptocurrency as a means to get more hardware has a lot of value.
Keep Your Position as an Investor
Investing in cryptocurrencies is exciting. Its mercurial rise and fall give winners such a thrill. This is because volatility is currently a natural characteristic of cryptocurrencies. However, when an investor suddenly needs liquid funds for the short term, he has to sell his position to get fiat currency back. MoneyToken provides an option for investors in these situations to be able to have access to liquid funds yet maintain their position and keep enjoying the potential gains in the market.
When MoneyToken takes cryptocurrencies as collateral, the loan repayment computations will not be adjusted even if the virtual coin goes up or down in value. This gives the investor the freedom to spend some fiat currency through a loan but not suffer a decrease in crypto-asset value.
How It Intends to Help Small-time Miners?
Crypto miners who lack the funds to purchase hardware for enhancing their mining capabilities can leverage the current value of their holdings to acquire liquid funds. In a conventional scenario, a full-time crypto miner has to sell his position for liquid assets to purchase much-needed upgrades. MoneyToken solves this problem by anchoring the repayment of the loan on the value of the collateral upon the loan’s approval.
A huge part of the draw of MoneyToken’s service is its deployment of one of the first Artificial Intelligence and blockchain integration. Nicknamed Amanda, the AI is to serve as the company’s loan originator, credit assessor, and the account’s loan officer. This creates an environment where loan approvals don’t have to depend on human discretion. There will be no credit checks as loans can only be approved with the attachment of a collateralized cryptocurrency.
So, is MoneyToken worth your attention?
That’s a definite yes.
The less than ideal adoption rate of cryptocurrency as payment in small to medium scale businesses makes fiat currency still very much relevant. As long as cryptocurrency is still treated as an asset as opposed to real currency in exchange for goods and services, MoneyToken has a place in the cryptocurrency industry.
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