If the altcoin loses value, he simply does not repay the loan. Have people attempted to do this in the past? I would imagine if this did happen that loaners would no longer accept altcoins.
this point is why the lenders who accept altcoins only choose to accept stable altcoins as collateral, and ask that at least 115%+ of the loan value is given as collateral. a loaner who doesnt really know better is vulnerable to being scammed this way i would imagine. i dont often see altcoins used as collateral on here though, at least not nearly as often as forum accounts are used. Makes sense, I kind of figured there would be some sort of set of rules each lender has in regards to altcoin (and other collaterals, I'm sure). It just isn't something I had ever really seen mentioned, maybe because such a scam would be too creative to see much popularity.
