Behind MoneyToken is Amanda. Amanda is an Artificial Intelligence Assistant who will provide automated loan operations within the platform.
Amanda is powered by a deep learning AI algorithm, and her goal is to provide human-like services for the platform users. Besides functioning as a loan assistant, Amanda acts as a true AI, analyzing clients activity on the platform from their first steps, through to loan completion in order to generate predicative actions; for example being able to offer additional financial services, tracking collateral performance, monitoring loan repayments and due dates – all the functions required within an ecosystem that is not managed by any central authority.
Amanda helps remove the need for middlemen and managers, hidden commissions and fees, and obscure terms written in the ‘small print’ of contracts; all the bad practices of traditional banking.
MoneyToken: changing the face of financial services
At this stage of the market’s development, we see that cryptocurrency assets have gained the characteristics of various financial instruments. We can divide cryptocurrencies by their qualities and algorithms; into investment assets and means of payment.
- Investment assets are volatile and compelling for the long term, made to earn on the difference between rates of exchange or getting other types of earnings, such as from proof-of-stake algorithms, rate in interest and so on.
- Payment cryptocurrencies are created to support the stability of the rate of exchange – they usually are embedded with a self-regulation mechanism, a unique algorithm to regulate the difficulty of mining or the release of new coins.
The problem is that, even if the new functional cryptocurrency has a capitalization of several million, it’s probably not recognized by the pre-existing fiat financial system as an asset. Even if on the governmental level the cryptocurrency has a certain status, the banking system and its loan services are closed for the cryptocurrency business or the holders of such an asset.
In the majority of banks, it’s impossible to acquire a loan for the development of a mining farm using cryptocurrency as collateral.
We see that one of the main functions of banks and lending institutions in the current fiat system of loans secured by collateral is assigning value to the assets and businesses of borrowers to minimize the risks of default on debt. A secondary, but still very important, function (often delegated to other institutions) is the verification of assets, individuals and businesses; the realization of assets; and the collection of debts and dues.
None of these functions are essential in a blockchain-based credit system, in which the value of the collateral asset at any moment is public and the credit terms are transparent and fixed in a smart contract; no intermediaries are needed besides the link ensuring the completion of the transaction and the smart contract.
Under the conditions of a cryptocurrency economy, banks and contract participants’ competencies can easily be eliminated by smart contracts, the cost of a loan lowered and the conditions of applying for a loan can finally be made transparent to all parties.
Reserve funds, funds that guarantee investments, banking deposits and government guarantees are created to neutralize the risks of economic turmoil, mass default on debt, as well as to guarantee the safety of funds and the earnings of creditors.
While the blockchain technology allows for getting rid of all the intermediaries in the loan system, automatic control of risks is a primary advantage of the MoneyToken platform.
Initial Money Token (IMT)
The solution that we have developed to minimize the risks, both for the platform itself and its users – a token with a specific functionality.
- Privileged terms for platform users when depositing IMT to receive Borrower Membership.
- Up to 60% discount on the platform fees for Borrower Membership.
- When using the discount from the user’s balance, the equivalent of 50% of the discount in USD is charged in IMT tokens.
- The opportunity to become a lender when depositing IMT for Lender Membership.
- The supply of IMT is limited
- Additional mining is prohibited
IMT tokens can be purchased during the Token sale for $0,005. After the Token sale IMTs will be available for purchase in Retail Sale.
The Retail price of IMT inside our platform will be $0,05, it is 10 times higher than the token sale price, it will be increasing over time and never lower than the token sale price.
The funds received from the Retail sales of IMT will be transferred to the MoneyToken safety fund to protect lenders interests.
At the launching stage of the platform, as we’re one of the pioneers in this field and the competition is virtually non-existent, we’re fixating the following conditions that may change in the future:
0,2% a day for short-term loans from 5 to 90 days,
10%/year for long-term loans from 6 months to 2 years
But later fees and deal conditions will be formed by the market, by borrowers and lenders so it could be changed in the future.
MoneyToken Safety Fund
In order to level out any risks tied to a possible rapid drop of the collateral currencies’ value in comparison to the value of the loans given out, or difficulties in processing of the collateral asset, a MoneyToken safety fund will be created.
The safety fund portfolio will consist of:
- a percentage reserved from the profits of every credit deal;
- a percentage reserved from contributions attracted to the Token sale;
- funds which will be received by the Platform from the Retail sale.
MoneyToken Credit Fund
The credit fund regulates and influences the maximum possible amount of loans that the platform can give out.
After the Token Sale stage, the lending portfolio of MoneyToken will include a total of $20+ million and continue to grow through contributions from early- and late-stage partners as the platform expands and scales.
MoneyToken’s lending model uses fluctuating crypto-assets as collateral for a loan provided in fiat currency or stablecoin.
The list of the advantages of this model versus traditional banking or pawnbrokers’ schemes:
- Automatic confirmation of the loan within seconds or minutes.
- No requirement for credit scoring or verification of assets.
- The customer regulates the loan conditions on their own within the confines of the platform’s terms.
- An option to deposit the collateral in several cryptocurrency assets in order to stabilize the general fluctuation of the collateral and lower any upward pressure on interest rates.
- Transparency of the operation during both transfer and retention of the security deposit.
- Transparency of collateral evaluation and the fluctuation of its value over time for both parties.
Interest rates for this type of loan can be settled using the collateral value or paid off in crypto- or fiat currency, in which case the security deposit will be returned immediately after the settlement.
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Author: Crator Touch
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