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SOFIN (Social Financial Network) is the international fiat platform of P2P loans based on blockchain technology. Borrowers and creditors negotiate directly on this platform. The average interest rate on the SOFIN platform is 15-20% per year. For borrowers, this indicator is ten times lower than in MFIs (up to 600%), and for creditors — twice as high as the bank deposits profitability (6-9%).
SOFIN system uses Ethereum ERC 20 platform. Blockchain gives the opportunity to commit all transactions and shows reliable reports without a personal data disclousing. Moreover, blockchain helps to integrate scoring, verification, exchange of cryptocurrencies and another ERC 20 services.
The SOFIN project starts the pre-sale of its tokens on November 6. On December 11, ICO launches to raise funds for the project development. The platform issues 90 000 000 SOFIN tokens, and 81 000 000 of them will be on sale. They will be automatically re-bought from the exchange to cover the commission for the loan (5-9% of the amount), while 1% of SOFIN tokens will be burned via smart contract. Platform tokens will be traded on the exchange. They are used to convert currencies if the borrower and the lender are in different countries. Conscientious participants get their bonuses and cashback with the tokens. Creditors can give them up to 20% of the loan.
Due to the fact that money on the platform is converted to tokens to pay the commission, the capitalization of the world’s cryptocurrency is growing. In addition, the participants who receive bonuses in SOFIN are interested in spending them, even if they haven’t known anything about the blockchain before. Thus, the SOFIN project contributes to the development of the cryptocommunity.
The advantages of SOFIN are legal transparency and multi-stage verification of the borrowers. Both models are worked out on other projects of the platform creators, first of all, it’s online MFI “Loan club”. Transactions between SOFIN users are concluded according to the legislation of the borrower’s country, which guarantees their full legal significance. The platform provides support for the contract, sends out notifications in case of delay, sends personal data to collectors by the request of the creditor and prepares a package of documents for the court. Verification of the borrowers is based on 12 basic parameters, which includes checking documents, bankruptcies, payments, credit history, place of employment and all the contacts. An official access to data is provided through a partner MFI. The rating of SOFIN platform is formed according to the received data. The highest rating gets a user who will pass the voice test via a phone call, video call or personal meeting.
Investors choose P2P loans for transparency in the distribution of funds and higher deposits profitability and they agree with SOFIN platform manager Andrey Tuchkov that “money must work.” P2P-format is not only interesting with its higher rates but it also meets the needs of the economy. According to Worlds Bank, more than 2 billion people in the world don’t have access to financial resources. The P2P-loan platform SOFIN is seeking to address this problem and allowing to take part in lending to any person from any country according with the legislation.