Money Token - Platform for Smart Loans Backed by Crypto-Assets

https://moneytoken.com/

MoneyToken is a bright example of the real use of blockchain technology, as well as offering a massive boost for crypto market liquidity for all market players, and especially for businesses

Since the emergence of cryptocurrencies, the behaviour of users, owners and miners has proved to be very different than what was expected. Rather than turning into true ‘virtual coinage systems’ used to buy goods and services on a day-to-day basis (from your morning latte to houses and cars), Bitcoin and other cryptocurrencies have turned into long-term investments; from something you keep in your wallet into something you store in your safe.

Nobody now would suggest buying pizza with Bitcoins as happened back on May 22nd, 2010 (Bitcoin Pizza Day) when a developer bought 2 Papa John’s pizzas with 10,000 units of BTC. "It wasn't like Bitcoins had any value back then, so the idea of trading them for a pizza was incredibly

cool," Hanyecz told The New York Times in 2013. "No one knew it was going to get so big."

Platforms that attempt to intermediate cryptocurrency-backed loans between individual lenders and borrowers usually fail to provide the service of proper risk management to their clients; price volatility of the collateral creates a burdensome risk to both the borrower and lender.

At the other end of the spectrum, most established lending channels are unwilling to accept volatile assets such as cryptocurrency as collateral at all. MoneyToken aims to resolve these issues, managing clients’ risks and creating a stable lending model using cryptocurrencies as a security deposit. Our model aims to facilitate access to credit while building a new credit market – loans backed by crypto collateral, based on the security and transparency of blockchain technology.

Problem

The problem has been obvious for some time - spending crypto assets today prevents cryptocurrency holders from gaining on any future growth in asset value; holders who buy low need to hold on to their investments in order to benefit from selling high.

This is where MoneyToken steps in. The MoneyToken platform allows you to borrow liquid funds instantly, based on the current value of your cryptocurrency asset holdings. You take out a loan, collateralized with more volatile assets such as Bitcoin or Ethereum - and in return you receive an agreed loan amount in a stable currency. And after repaying the loan you receive your whole collateral back; even if the collateral has increased in value multiple times.

This way, you're able to acquire liquid funds for immediate needs, and save your crypto position, all at the same time.

Vision

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.

Amanda is an Artificial Intelligence Assistant who will provide automated loan operations on the platform. She will also showcase MoneyToken’s platform functionality before the official platform launch.

Who is the platform for?

• Miners — Avoid cash flow issues or invest in more equipment, without losing your existing mined cryptocurrency
• Traders and investors — Hold on to your cryptocurrency investment portfolio and use leverage to make further investments or increase your liquidity
• ICOs — Quickly access cash, without all the red tape, for short term business needs
• Exchanges — Meet extra cash needs while hedging exchange risks and leveraging your crypto assets

Token Functions

• 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

IMT’s properties

• The supply of IMT is limited
• Additional mining is prohibited

Lending Model

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

Legal Status of the IMT Token

• IMT tokens are utility tokens.
• IMT tokens do not share the properties of paper securities.
• To ensure compliance with anti-money laundering (AML) policies, Know Your Client (KYC) procedures will be implemented.

For Information

Website: https://moneytoken.com/
Whitepaper: https://moneytoken.com/doc/MoneyTokenWP_ENG.pdf

Abstract: https://moneytoken.com/doc/Abstract.pdf
Telegram: https://t.me/moneytoken

Medium: https://medium.com/@moneytoken

Twitter: https://twitter.com/MoneyToken

YouTube: https://www.youtube.com/channel/UCz9r7r5BSoq4eE6guMa7P-w

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