On Saturday, Jake the Crypto King wrote a detailed article on Bitcoinist.com about 4 cryptocurrencies he thinks are “ready to beat BTC” in 2018.
Jake says his favourite cryptocurrency is INS, which is the token of a platform where customers can purchase groceries online directly from the producers while removing the middlemen.
His second and third picks were XRP and ANON, a fork of ZCL and BTC which he founded in April, 2018. Last but not least, he talks about his favourite ICO with the most potential, which — of course — is INLOCK.
“The INLOCK platform and its “ILK” token is a unique ICO that is occurring at the perfect time. ILK represents a lending platform for cryptocurrency holders. When better than immediately prior to what is likely to be an epic bull run to release a lending platform?”
The King also added:
“With a strong roadmap, concept, team, and strategy, the only thing holding ILK back is the current bear market. Will we catch a bull market run in quarter 4 of 2018? Well if we do, all these “forgotten” ICOs will be remembered like ETH was 6 months ago.”
The basic concept is to have Borrowers lock their existing crypto as collateral in exchange for a FIAT loan. The deposit is then stored in multisig wallets and locked in a smart contract. Thinking of it strictly as a loan may confuse some, since it’s technically an exchange of crypto for fiat with the promise to exchange it back at the same rate. When the Borrower repays the loan and the interest, he gets all of his crypto collateral back, since platform fees are paid in ILK tokens. The tokens are distributed among the various INLOCK platform roles. This incentive system guarantees the integrity of all parties on the platform. The loan amount and the interest are available in full at the time of contract formulation, thanks to having collateral with a Global price consensus that can be liquidated in seconds, making the transaction extremely safe for the lender.
Some of our users take out loans to cover expenses they would have otherwise paid for with their crypto, while others only need the cash to cover a short term liquidity problem (with the intent of keeping the crypto when the contract expires). Following the first example, if we want to buy a plane ticket for $1,000 but only have Bitcoin, we can lock $1,300 worth of BTC (0,18 BTC at the time of writing) as collateral to get a $1,000 loan with a 30% overcollateralization to allow room for volatility (the minimum overcollateralization value is 5%). After Borrowers submit a lending request, INLOCK allows institutional lenders to compete for Borrowers instead of holding a centralized pool of liquidity. The market competition that’s created by multiple banks offering loans with slightly different terms drives interest rates and loan disbursement speeds down. In such a competitive environment, it’s likely that the lender who is the quickest to respond to lending requests and who offers the lowest interest rates will get the most business. In this instance, let’s assume we took out a loan for 6 months with 10% APR (which is equal to 5% interest for the given contract period [$50]). The platform fee we would have to pay for using INLOCK is 0.25% of the USD value of the collateral at the time of contract formulation ($3.25). This means that for $53.25 + the amount the bank charges to deposit the $1,000 into your account (0.1%-0.5%, $3 on average), so for $56.25 we have a $1000 loan for 6 months. If Bitcoin decreases in value, we have the option to add additional collateral at any point or extend our loan if we believe it will go back up. On the other hand, if Bitcoin were to go up by more than 5.625%, we just bought plane tickets at a cheaper price by using INLOCK, whereas we would not have gained anything if we had sold 6 months ago. If we continue with the same scenario, but with the intention of buying back our BTC (paying back the loan), we can pay the $1,056.25 and buy it back at the price it was 6 months ago. INLOCK accepts BTC, ETH, BCH, LTC as collateral with new cryptocurrency being added every 6 months.
We were delighted to read his take on INLOCK, mainly because it’s showing us that the market is starting to understand what we’re trying to do: To allow customers to spend their crypto while HODLing it at the same time. We truly believe solutions that speed up the adoption rate of cryptocurrencies play a vital role in the crypto ecosystem, and we can not thank you enough for your support! We are all crypto holders and enthusiasts ourselves, so seeing the industry develop feels good both from a personal and a business point of view.
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Originally published at loan.inlock.io on September 24, 2018.
