Moneytoken Whitepaper

It only takes a brief look at the cryptocurrency
market capitalization charts over the course of the
past year to see that the majority of these
currencies — Bitcoin, Ethereum, Litecoin, Monero
and other major cryptocurrencies — show
significant growth in value and are expected to
see significant growth in the future, reflecting both
a loss of faith in traditional money systems and a
growing confidence in the power of blockchain
technology.

However these cryptocurrencies are not proving
to be very effective as payment instruments; their
growth in value has caused them to behave more
like assets than currency, so investors and miners
are holding cryptocurrencies rather than using
them to purchase goods and services . Users have
no incentive to trade or sell them, since once they
are traded, owners lose their investment position.
The solution is a credit model in which volatile
crypto-assets act as collateral while credit is
granted in a stable currency.
This system allows borrowers to gain profits from
their assets as the market rises, while reducing risk
to credit providers and borrowers if the market
falls.

Platforms that attempt to intermediate
cryptocurrency-backed loans between individual
lenders and borrowers usually fail to provide the
service of proper risk management to their clients;
price volatility of the collateral creates a
burdensome risk to both the borrower and lender.
At the other end of the spectrum, most established
lending channels are unwilling to accept volatile
assets such as cryptocurrency as collateral at all.
MoneyToken aims to resolve these issues,
managing clients’ risks and creating a stable
lending model using cryptocurrencies as a
security deposit. Our model aims to facilitate
access to credit while building a new credit market
– loans backed by crypto collateral, based on the
security and transparency of blockchain
technology.

Moneytoken Website
Moneytoken Whitepaper

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