Month: August 2019

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More and more individuals are taking out consumer loans as they could be very helpful and useful, especially now that there are more lending companies and options which are alternatives to traditional loans taken from banks. For example, the American Pride Legal Funding provides automobile accident settlement loans which could be issued quickly after approval. Such loans make it easier for individuals to settle any unforeseen expenditures.

Most consumer loans are secured, which means that a collateral is needed to acquire a loan. Collaterals depend on the type and amount of loan you are getting. With the increase and progress of online lending as well as technology itself, cryptocurrency could now be used as collateral to obtain a loan.

Known as crypto-backed loans, these loans are secured or insured by crypto or digital currency assets, meaning fiat money are lent or loaned in exchange for cryptocurrency such as Bitcoin, Ether, or Litecoin as security or guarantee for payment. Many crypto holders take put crypto-back loans since the loan process is uncomplicated and the fiat money is directly transmitted into the bank account or digital wallets of the borrower.

Crypto holders may find crypto-backed loans to be a very cost-effective means for managing the digital currency as necessitating access to the fiat money (typically US dollars). So how can crypto-backed loans be used? Here are some:

  1. Compensate for travel expenditures like vacation trips
  2. Purchasing a home or investing in real estate
  3. Financing a business startup or business undertakings and operating costs
  4. Consolidating or settling debts
  5. For other personal purchases or products and services

How Crypto-backed Loans Benefit Borrowers?

Lenders don’t usually do credit history checks as well ask for evidence of payment capability. This could be regarded as a major likelihood of credit risk.

  1. Loans could be easily and directly transferred to your bank account or digital wallet and could be withdrawn via any bank card ore bank transfer.
  2. Lenders of crypto-backed loans could offer a borrower a lending term and condition that is flexible which could be made better for both the borrower and the lender.
  3. Crypto holders could use various digital currencies, such as Bitcoin and Litecoin, as collateral.
  4. Crypto assets could be preserved or kept as no requirements are needed to sell them for fiat money.

How Crypto-backed Loans Benefit Lenders?

  1. There is a minimized risk since the total repayment or settlement of the loan as well as the interest is guaranteed and without deferments.
  2. The system or method is fundamentally automated; moreover the exchange directly transpires in the bank account thus making it simpler to keep an eye on and track fund usage.
  3. The range is stretched to audience of borrowers across the globe causing decentralized peer-to-peer crypto lending to be perimeter agnostic, hence loans could be extended in whichever currency that is available.
  4. Complete legal status is given and the strong setup guarantees security of the funds.
  5. Barriers are not present with regards to the least possible requirements for a lender. Any legally recognized entity or individual could be a lender.

During the later part of June, 2019, complaints from Plus Token e-wallet users in China, South Korea and Japan about their inability to withdraw from their account, had prompted Chinese law enforcement authorities to act swiftly. Their initial investigations led to the arrest of six (6) Chinese nationals working as core team of the Plus Token mobile wallet operation.

Dovey Wan Blows the Whistle on Plus Token’s Ponzi-Like Scheme to Alert the Cryptocurrency Community

News of the arrest did not receive wide coverage, which apparently was still under investigations. However, in early July, Dovey Wan, co-founder of cryptocurrency company Primitive Ventures noticed that the Plus Token site was moving out digital money in small amounts.

The movements made use of e-wallets not registered with the company when traded with crypto exchangers Bittrex, Binance and Huobi.

Although Ms. Wan tweeted about a possible Ponzi Scheme happening at the Plus Token site, cryptocurrency exchangers were unable to identify which e-wallet to block, since there were no digital currency transactions directly related to Plus Token.

Apparently, the Plus Token scammers have taken advantage of the sophisticated blockchain system of recording transactions. In using encryptions containing public and private key codes instead of real information about traders, the blockchain system makes it difficult to immediately trace and establish the identity of persons involved in cryptocurrency transactions.

As Dovey Wan had found out and later tweeted, unidentified Plus Token operators still at large were able to transfer around 70K Bitcoin(BTC) and 800K Ethereum (ETH) early in July. Ms. Wan summed up the entire amount that Plus Token had stolen from its investors, and arrived at an overwhelming estimate of about $3.2 billion-worth of cryptocurrency. .

The major players behind the Plus Token Ponzi-scheme still has control over the stolen cryptocurrency. Since July, they have have been transferring the digital money into different crypto wallets from which they can withdraw and convert the cryptocurrency into real money.

Crypto-Analyst Firm Reports that Plus Token Scammers Used Online Mixing Services to Pre-Launder the Stolen Cryptocurrencies

A related report coming from Token Analyst, a London-based crypto-analytic firm, said that the Plus Token scammers have been using online mixing services as a means of masking the origins of their fraudulent blockchain transactions even before the scam was discovered. Doing so enabled the fraudsters to trade the stolen digital currency at legitimate exchangers since the cryptocurrency online mixers were able to mix the money in different e-wallet accounts owned by Plus Token.

That being the case, the stolen money have been laundered and made to look like legitimate funds used for conventional transactions via the blockchain platform.

You have probably been seeing, reading and hearing about Bitcoin. But do you have the slightest idea what it exactly is? Basically, Bitcoin is a form of digital currency. And there are many of them. Digital Currency is also referred to as a cryptocurrency.

This term was first used by an anonymous individual during the financial crisis back in 2008.

Much like Traditional Currencies but it’s all Digital

Digital currency account is much like a checking account where it can be viewed online. Simply put, it is a digital currency you can view but you cannot touch. In regards to Bitcoin, it has no physical representation since all money exists in digital form.

No one’s regulating this currency and in the same manner, the network isn’t managed by any known entities while the tokens are being exchanged between people via sophisticated software system. In other words, the entire system is decentralized and it’s operated by a computer network.

Know what You can and can’t Do

 

It is vital to be aware of the fact that you cannot use these tokens for paying the usual stuff you buy in the market. Truth is, Bitcoin and other cryptocurrencies can only be used to stores online or sell it to other people. On the other hand, there is an increasing number of companies that are starting to accept Bitcoin as well as other digital currencies known to man. Soon, even the best credit card in Singapore or in any part of the world could be using crypto technology.

To give you an example, Overstock and Expedia are accepting it from their customers. Among the major features of this currency is that the entire transaction is untraceable and private. That is one of the numerous reasons why most prefer this type of money than others.

Is it Smart to Invest in Bitcoins or other Cryptocurrencies?

With the immense popularity and usage of Bitcoin, you may be wondering whether to start investing your money into it or not. Well just like when investing in stocks of other companies, this is something that will require proper judgment. Otherwise, you may just regret your decision. So before pushing through with your decision, it is essential to learn about the risks that are associated with the system.

Among the risks that you should not take lightly is volatility. This means that the value of Bitcoin can fluctuate within a day. Truth is, the rise and fall in value could be in the 30 percent region. So don’t make any hasty decisions. Think of your move first.

For the longest time, many individuals have been taking out loans the traditional way to augment finances through banking institutions and other lending companies. However, with the advancements in fintech, consumer loans whether secured or unsecured, such as https://www.forbrukslån.com/, are now available and accessible from numerous lenders, even if you have bad credit.

Today, one form of loan that is increasing in popularity are loans that are backed by digital currencies. Known as Crypto-backed loans, this form of loans epitomizes an excellent option or alternative to the usual loans taken out traditionally, mainly because of the technology on blockchain utilized to secure the loans wherein it amplifies transparency as well as trust.

Crypto-backed Loans – What are they?

Crypto-backed loans, as indicated in the term itself, are loans guaranteed or secured by assets in the form of cryptocurrency or digital currency. Although there is no tedious documentation, verification as well as credit checks, to be able to obtain a loan, you basically must have a cryptocurrency to function as a collateral.

Lenders provide crypto-backed loans through platforms with decentralized blockchain, wherein smart contracts are generated as soon as each party settle on a reciprocated agreement. Since there are no hidden charges or fees, the process in getting crypto-backed loans is straightforward as well as transparent. Just like any collateral, once a borrower has fully paid off their loan, they get back their cryptocurrency assets.

Because of the volatility of cryptocurrency, there is a fluctuation of crypto assets as well. Therefore, to protect themselves, lenders include margin calls wherein borrowers have to raise their collateral in the event that its value suddenly or severely drops.

Why Consider Crypto-backed Loans?

Any holders of crypto have a long-standing view of their assets or investments. Though they intend to hold their assets, at times certain situations and conditions push investors to sell their crypto assets for fiat money. However, instead of selling them, investors could utilize their crypto as collateral or guarantee to a loan, which allows them to retain ownership of their assets as they get access to the fiat money that they need to finance their ventures.

Although not fully embraced yet, many would agree that crypto-backed loans are better compared to traditional loans. This is so since processing is quick, wherein there is no verification or credit checks included and the loan you take out is nearly immediately issued. Moreover, crypto-backed loans are safe since the crypto assets that are put up as collateral are securely kept in cold wallets up until the borrowers completely pay off the loans.

Where do borrowers use crypto-backed loans?

Borrowers take out crypto-backed loans for several different reasons. Here are a few:

  • Buying a home or for home improvements or renovations
  • Paying off student loans or credit card debts
  • Financing a startup or other initiatives for business
  • Paying off travel or vacation expenses

 

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