Crypto-backed P2P loans platform launches ICO
A PLATFORM looking to provide global peer-to-peer unsecured loans has launched an initial coin offering (ICO) to build the proposition.
FintruX, headed by fintech expert and former JP Morgan systems analyst Nelson Lin, is looking to raise a minimum of 5,000ETH (Ethereum) in return for tradeable FTX tokens.
Lenders will be able to back loans and receive repayments in any currency but transactions fees and any rewards or late payment charges will be paid in FTX.
There will also be an option for investors to become guarantors of loans and will receive tokens in return, but must cover any losses.
FintruX has also built a network of fraud, identity and credit scoring agencies that lenders can use to vet borrowers and businesses will also pay back an extra 10 per cent that goes into an insurance pot to cover any losses. This is given back if the loan is repaid.
Additionally, five per cent of all FTX Tokens will be reserved to cover any losses incurred by lenders.
Each loan will have an online smart contract that is stored online on the Ethereum blockchain.
The pre-sale started on Sunday and ends on 21 January before the main sale on 7 February provided the minimum is reached.
One ETH, currently worth around £750, will be the equivalent of 1,650 FTX in the presale and 1,500 in the main sale.
“FintruX Network is a fully decentralised P2P platform generating and deploying one unique smart contract on the Ethereum blockchain for each individual lending,” the FintruX white paper that details the proposals said.
“For unsecured loans, it uses credit enhancing tools such as overcollateralization, guarantors, cross-collateralization, and Our target borrowers are small businesses, especially startups, who wish to take advantage of lower rates offered by our platform because we make unsecured loans highly secure. Specialsed agents on fraud, identity, credit scoring and decisions are partners in this ecosystem.
“Only accredited investors and financial institutions can become lenders on phase I of FintruX Network. There are hundreds of marketplace lending platforms out there, we differ in that we enable borrowers to borrow at a significantly lower rate at ease and lenders lend with confidence in no time at all.”
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