Blockchain lending is insecure and a lengthy process. Bitbond replaced ICO with STO to solve this problem and make blockchain lending seamless.
Blockchain has disrupted almost every industry in the last couple of years. Slowly but surely the cryptocurrency market has also caught up. The financial industry is perhaps the most affected by blockchain. As a matter of fact, Thailand has started a cryptocurrency stock exchange to tap the upcoming benefits of the cryptocurrency revolution. Traders have made substantial gains simply by using cryptocurrency as their mode of transaction and lending it at the same time.
As pleasing it may sound, there are some issues related to cryptocurrency lending. For example, 22% of the cryptocurrency loan is not being repaid, cryptocurrency lending scams etc. To remove all these discrepancies with the cryptocurrency lending system, Bitbond, a German startup came up with an idea of replacing ICO (initial coin offering) with STO (security token offering).
Till date, Bitbond has sanctioned over 3000 cryptocurrency loans to individuals in approximately 80 countries of the world. In doing so, it has earned the BaFin license which led to Bitbond launching the first ever STO. In its early days, Bitbond followed Bitcoin’s footsteps. Soon, Bitbond decided to change trajectory as the process followed by Bitcoin was more time and cost intensive.
The security tokens offered by Bitbond goes by the name BB1 and it is backed up by a well laid out security framework. The token offering began on 11th March. All major cryptocurrencies like Ethereum (ETH), Bitcoin (BTC), Euro (SEPA), and Stellar (XLM) can be used to purchase the BB1 security token.
Bitbond’s objective is to provide loans to the micro, small, and medium-sized enterprises of the world. If Bitbond successfully completes this feat, it would lead to a € 1 billion boost in the company’s capacity to extend loans.
Also, Bitbond is attempting to mitigate the risks associated with the ICO system by implementing the stellar blockchain. This combined with STO will not only increase the transparency level in the industry but also strengthen it against scams.
For investors, it means that now they will be able to participate in the lending process without having to worry about picking the right borrowers. For borrowers, it basically opens up a channel from where they can secure funds. The processing fee and repayment rates are minimum which safeguards the interest of micro, small, and medium businesses.
Bitbond has 6 years experience in this field, close to 200,000 users, and approximately $20 million disbursed in loans. Lending is not a new concept, rather it is one of the oldest. It has seen a number of variations and today with the introduction of Bitbond’s STO on the stellar blockchain, the cryptocurrency lending process has become ever so easy and secure.
Since the whole system is on blockchain, the level of transparency is on a whole new level. Investors can earn upto 4% annually whereas borrowers have access to easy credit. Bitbond’s STO is the way forward to cryptocurrency lending.
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