Topic: Lending coin platform with return of invest? Viable ? (Read 111 times)
There is a lending section in the forum, the only problem is that some people who do loan, sometimes default out of the loan which is problematic for the lender since they are the ones who took the L. I don't think that a decentralized lending platform is going to work if there is no KYC involved or any identification so they can be approved for a loan.
How can a lending system work in a decentralized system ? Why would anybody pay back its debt?
Most projects use a collateral. Users have to lock some collateral before they can lend, such as yield.credit. It works quite well so far, more than $800k have been loaned with more than $40k interest for its lenders. Other projects use a lending pool and collateral pool, while others do it in a pure P2P using smart contract. The trust problem can be solved by either trusting the developer or smart contract, or you can verify how the contract works before using the platform.
How can a lending system work in a decentralized system ? Why would anybody pay back its debt?
Crowdfunding and kickstarter are decentralized lending systems.
The decentralized lending format could become more apparent in the guise of franchises like the game Star Citizen. Where some initial funders requested refunds. There are other lesser known cases where kickstarter projects failed to deliver on promises, which later went to the court system. In worst cases, the criminal justice system becomes involved.
Offering a percentage of interest to initial crowd funders is a variation on the same system kickstarter and other crowdfunding projects have utilized for years.
For crowdfunding where you don't have to pay back, thus one way traffic, a crypto lending coin platform could work perfectly. As now the commission that you have to pay is around 10%, which is huge I think if you consider millions that are collected.
Of if the project is very serious that you can trust that they will pay back.
So trust is very important. And this can lead to a scam of project where they raise millions, maybe billions.
But crowdfunding with one way traffic a cryptocoin platform could be excellent as this will lead to very low commission costs.
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I changed the topic name as mine question seems to be not coupled to decentralized token.
Some people on this forum were positive about the new coin sovryn. What they have is decentralized coin and trading and lending platform. İf you lend money you will earn something.
With this idea they raised millions.
When I saw lending, I thought that it is not possible. I imagined also that most of the developers are a very small group.
I got suspicious why it would work.
Imagine someone asks for money in some country and you lend it, when the pay time comes that person doesnt pay. What can you do? Even if you can do something, will you have the right people to go after that money? And what if there a lot of people that do not pay back?
An usual bank earns billions because how the bank system works. So if couple of hundreds customers dont pay back that is not a big issue. And Banks have a lot of people working for them.
This project seems not survivable. Only if the project is backed up by huge company than maybe they will come further.
Anyway so with this idea the coin developers will get very rich.
What is going on. Are people so much interesting in cryptocoins. Or some new ideas.
With this idea they raised millions.
When I saw lending, I thought that it is not possible. I imagined also that most of the developers are a very small group.
I got suspicious why it would work.
Imagine someone asks for money in some country and you lend it, when the pay time comes that person doesnt pay. What can you do? Even if you can do something, will you have the right people to go after that money? And what if there a lot of people that do not pay back?
An usual bank earns billions because how the bank system works. So if couple of hundreds customers dont pay back that is not a big issue. And Banks have a lot of people working for them.
This project seems not survivable. Only if the project is backed up by huge company than maybe they will come further.
Anyway so with this idea the coin developers will get very rich.
What is going on. Are people so much interesting in cryptocoins. Or some new ideas.
How can a lending system work in a decentralized system ? Why would anybody pay back its debt?
Crowdfunding and kickstarter are decentralized lending systems.
The decentralized lending format could become more apparent in the guise of franchises like the game Star Citizen. Where some initial funders requested refunds. There are other lesser known cases where kickstarter projects failed to deliver on promises, which later went to the court system. In worst cases, the criminal justice system becomes involved.
Offering a percentage of interest to initial crowd funders is a variation on the same system kickstarter and other crowdfunding projects have utilized for years.
So what you are trying to convey here is that this kind of system is not trustworthy? Never had any transaction with this kind of project so I have no idea if they are really accomplishing something here. But in my impression, this is not a very good platform to trust your hard-earned money. The promised ROI may be good but to what extent? If they have no enough clients, are you still gonna get the promised ROI?
How can a lending system work in a decentralized system ? Why would anybody pay back its debt?
Crowdfunding and kickstarter are decentralized lending systems.
The decentralized lending format could become more apparent in the guise of franchises like the game Star Citizen. Where some initial funders requested refunds. There are other lesser known cases where kickstarter projects failed to deliver on promises, which later went to the court system. In worst cases, the criminal justice system becomes involved.
Offering a percentage of interest to initial crowd funders is a variation on the same system kickstarter and other crowdfunding projects have utilized for years.
I see some populer coins like sovryn are lending coins. That is there project. And you will get some procent back.
How can a lending system work in a decentralized system ? Why would anybody pay back its debt?
How can a lending system work in a decentralized system ? Why would anybody pay back its debt?
If you are going to lending system, it is better to do crypto trading rather than this thing. It wouldn't give any benefit from you and yet
it will only give you hurt in the long run for sure. But this is just my advise and tips for you if ever you wanna go on this. But if you want to share this to some of your friends it is all up to you.
I see some populer coins like sovryn are lending coins. That is there project. And you will get some procent back.
How can a lending system work in a decentralized system ? Why would anybody pay back its debt?
How can a lending system work in a decentralized system ? Why would anybody pay back its debt?
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