Traditionally, the process of lending and borrowing money has been firmly under the control of centralized entities like banks and other financial institutions. Because of this centralization, lending institutions can exert an undue amount of power and arbitrarily determine who does and doesn’t get money, potentially creating unfair and biased outcomes.
Blockchain technology has created new opportunities for borrowing and lending in a
decentralized manner, which opens the way for more open and fairer results.
LoanBit: accessing loan facilities through the blockchain
According to its marketing blurb, LoanBit is a ‘peer to peer network that offers a robust investment platform and allows participants to get a loan in a currency of their choice.’
In other words, members of the LoanBit community are able to access credit facilities that bypass the stranglehold that banking facilities have on the credit ecosystem.
Some of the advantages for the borrowers are:
- Access to financial resources
- Targeted interest rate
- No hidden fees or commissions
- Online access to the platform
Conversely, LoanBit works to protect investors by covering up to 75% of the monies offered to a borrower via a safety fund.
LoanBit will make a profit by charging a commission of between 2-4% on each loan made through the platform.
LoanBit offers the following features:
- P2P Lending
- Money Exchange
- Safety Fund
- Verification Service
- Online Wallet
LoanBit in figures & quick facts
- Token name – LoanBit token (LBT)
- Total numbers of tokens issued – 28m
- Token worth – 1 LBT = $1
- Pre-sale start date – October 2017
- ICO start date – April 2018
- Soft cap – $500,000
- Hard cap – $20,000,000
LoanBit will offer a Bonus Scheme during the ICO period.
The scheme will run thus:
- Day 1 – 35%
- Days 2-4 – 20%
- Days 5-13 – 10%
- Days 14-31 – 0%
The LoanBit token
LoanBit will issue its own currency, the LoanBit token, which is based on the ERC-20 standard, and which the company describes as: ‘an internal platform token that gives access to the listings and will be used to pay commissions on the LoanBit platform.’
Once created, the LBT token will be distributed as follows:
- Pre-sale & ICO – 85%
- Team – 8%
- Consultants – 4%
- Bounty – 3%
Social media presence and digital footprint
Here are the SM numbers for Loanbit at the time of writing (mid March 2018).
- Twitter – 12.3k followers
- Facebook – 1,231 followers
- LinkedIn – 7 followers
- Telegram – 10.8k followers
- Medium – 17 followers
This ICO’s presence on SM is somewhat hit and miss. LoanBit has a solid following on Twitter and Telegram, but it remains negligible across other platforms.
Lending platforms on the blockchain have proliferated greatly in recent times, with dozens currently operating or coming online in the near future.
The lending market is becoming quickly swamped with similarly-themed ICOs, which means that the profits pie is becoming increasingly small. LoanBit will face an uphill struggle from the get-go.
See LoanBit review on ICOBench.
Consult LoanBit’s white paper for more information about the platform, additional features and services, etc.
There is nothing flawed with LoanBit’s proposition, and at the same time, there’s nothing particularly remarkable either.
The market has many similar ICOs, the challenge is to explain why this one is better than the others.