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MoneyToken ICO Review

17 march 2018, 12:29

General Idea

MoneyToken is an extensive Financial Ecosystem. The platform will consist of and offer few different financial services, like lending platform for example. Moreover, they want to create their own stablecoin, which would be much safer and efficient than other cryptocurrencies which are susceptible to market price changes.

Stable Coin

The main idea and feature of the lending platform was to create a lending system, where people could use cryptocurrency, despite their often rapid and sudden price fluctuations. No one would want to take a loan with a thought that due to the market change, he would need to repay even ten times more than he had borrowed.

There are currently few other stablecoins, that could act as an example of how it works. The most convenient option at the moment is USD Tether. The rate of exchange for USDT stays stable in comparison to Bitcoin, and it is easily exchanged for dollars as it’s already backed by collateral in dollars. Tether’s market capitalization has grown from about $55 million in April 2017 to $430 million in September 2017, which shows that there is an ongoing and high demand in such financial solutions.

Lending Platform

MoneyToken wants to allow as many users as possible to be able to take loans and be the borrowers, despite their financial status or credit checks. Loan approvals should take seconds, while the funds may be released almost instantly thanks to the smart contract. It's interesting that in MoneyToken, credits are given out from one credit fund, which makes collecting a credit portfolio unnecessary, as opposed to the regular p2p platforms.

The sole idea is rather simple. A person takes a loan, collateralized with more volatile assets such as Bitcoin or Ethereum for example. In return they receive an agreed loan amount in a stablecoin. After the loan is repaid, they will receive the whole collateral back, even in cases when it has increased in value many times because of market changes.

Collateral safety

The whole transaction and the loan are recorded and executed by the Ethereum-based smart contract. Collateral funds are kept in a wallet, protected by a multi-signature. To access the wallet, 3 out of 4 signatures are required. First one of them belongs to the borrower, second to the lender, and the other two to the platform itself. This assures none of the parts, even the MoneyToken platform cannot access the funds without the help of the others. That way, there is no risk that one of the parts will steal the money or scam someone. Such assurance cannot be made by most of the regular and mainstream platforms, where users have to trust the platform owners with their money and transactions. Moreover, in the future Multichain-transactions and multichain smart-contracts will be available, which would allow MoneyToken to become completely and fully decentralized.

Decentralized Exchange

In order to have a fuller control over the funds and collateral, MoneyToken will also include a decentralized exchange in their services. Users will be able to buy cryptocurrencies of their choice with fiat money and also quickly exchange the loans to a currency they need. Moreover, the exchange will be used for automatic collateral liquidation in cases of collateral currencies price drop to avoid any significant losses.

The Token

The IMT tokens will be used as a payment method within the platform with the main role of allowing users to purchase Customer Membership, which gives 60% discount on the platform fees. Moreover, one can become a creditor when depositing IMT for Lender Membership. Additionally, it will also allow token holder to take part in decentralized votings on important project issues.

ICO Phase

The first token offering will take place from 22nd of March to 12th of April. The initial price is set at $0.005 per token. During this presale they expect to raise around 1.5 million dollars. The main ICO phase runs from 2nd of May to 6th of June. During the token sale, they offer various price bonuses, therefore the earlier you decide to buy the more coins you can get. After the main phase is over, it will be possible to buy the tokens at the retail sale, however the price could be even 10 times higher. The funds received from the retail sale will be transferred to the Safety fund to secure the lenders interests.

The team

The team behind MoneyToken is relatively small, however it consists of many experienced specialists. There are people who have already worked in financial sector and cooperated with big corporations and banks like Deutsche Bank, Citibank or many WallStreet firms, while the programmers and software developers have worked on developing automated trading systems in equity, options and futures.

Final Thoughts

The project looks rather solid when it comes to the technical side and the solutions to problems presented in the whitepapers. The marketing aspect, with the site design and infographics is also very well done and the project seems to be user-friendly. All of the aspects are transparently explained in details in the documentation and whitepapers. Financial services like loans are usually very popular and in demand among the potential users. Therefore, MoneyToken may appeal and encourage the users through their low fees, secure loans and automatic system solutions.

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