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Jerome MacGillivray and Alex Rass have announced the creation of MoneyToken, a Blockchain based Financial Ecosystem that provides loans in stable currencies, secured using asset-based cryptocurrencies like BTC and ETH.
The MoneyToken ecosystem includes:
- Сryptocurrency-backed Loan Platform.
- MoneyToken Exchange service.
What problem is MoneyToken solving?
For cryptocurrency holders the problem is obvious — currencies like Bitcoin are not an attractive or preferable means of payment.
Miners and owners of Bitcoin are choosing holding strategy.
Holders who spent their Bitcoins in the past few years can only look back with some regret at the position they would now be in had they kept hold of their crypto-assets.
But there are always going to be times when asset holders need liquid funds to pay for immediate needs — whether that is for further business investment (such as miners who need to upgrade equipment or enlarge their operations), extending their asset positions (both in classical assets and crypto-assets), or to pay for immediate day-to-day expenses.
This is where Money Token comes in. The MoneyToken platform allows you to borrow liquid funds right now, based on the current and future value of your cryptocurrency asset holdings. You take out a short or medium term loan, collateralized with more volatile assets such as BitCoin and Ethereum — and in return you receive an agreed loan amount in a stable currency. On successful repayment, you receive back your crypto-assets in full.
– Jerome MacGillivray, co-founder MoneyToken.com
How does that benefit the crypto community?
MoneyToken gives the crypto community the opportunity to use cryptocurrency holdings just like any other classic asset class; borrowing today, based on the expected future value of the asset. Customers get to hold onto their growing assets whilst gaining the ability to spend and make investments right now.
Since the ownership of a blockchain-based asset is verifiable, and the value is transparent to the market, users don’t need to undergo invasive and unnecessary credit checks — there is nothing added to users credit history or any public credit file. Equally the loan decision can be made almost instantaneously — there is no need for MoneyToken to make extensive evaluations of the market value of clients assets (unlike, for example, as happens if you remortgage a property).
Difference from other crypto-backed loans platforms:
1) MoneyToken is an infrastructure project. It’s not just a lending platform: MoneyToken has its own ecosystem, aimed at creating its own stablecoin and decentralized exchange service.
2) The majority of the projects on the credit market are based on a P2P model, in which the platform acts as an intermediary. MoneyToken model is b2b2c. The platform has its own credit fund and acts as a lender. The clients of the platform act as borrowers.
3) Most of these projects issue loans in fiat money. MoneyToken also allows loans in stablecoins (bitUSD, USDT, Dai and MTC – MoneyToken own stablecoin); the MoneyToken team believes that future of payment methods lies in cryptocurrency.
4) While most of the platforms have geographic restrictions, MoneyToken will be fully available to the clients from all over the world.
5) Other platforms mostly use tokens to pay fees within the service. MoneyToken, however, does not apply any additional fees, and the token plays a unique infrastructure role, providing benefits, such as a discount on the interest rate.
About the Team
MoneyTokens board members have strong experience in IT, FinTech and Banking in companies such as Goldman Sachs, Prudential Financial and CitiBank. Both founders operate tech companies in NY, London and Europe.
We have been investing, trading and studying the cryptocurrency market over many years, so the need for a cryptocurrency-backed loan platform has been obvious to us for some time, that’s the reason why we have brought all our experience and knowledge together to form MoneyToken .
– Jerome MacGillivray, co-founder of MoneyToken.com
Since the MoneyToken team started the concept of this system in early 2017 they have been super-busy. Development is well underway already and both the official operational launch of the platform, and the TGE are planned to take place in early 2018.
The MoneyToken team has also been busy creating Amanda — the AI agent who will sit behind the platform and conduct automated loan processing, calculations and notifications.
Amanda will be launching in a demonstration mode to showcase the features of MoneyToken before the official platform launch in 2018.
You can find out a lot more about the project at a website moneytoken.com or on social media: