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SpectroCoin Is Driving Crypto Lending to Mainstream

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SpectroCoin is bringing crypto lending to the mainstream and supports more coins beyond ETH.

Leading cryptocurrencies are valuable. They are enablers allowing users to move value in closed ecosystems. Systems like Bitcoin, Ethereum, XRP, and others are common examples. 

The Rise of Crypto Lending

In the early days, digital currencies were highly speculative. However, times are changing and ownership of these assets are now viewed as a means of accumulating wealth through capital gains.

Highlighting the growth of crypto is the rise of lending platforms. Crypto loan platforms like SpectroCoin allow users to deposit their digital assets as collateral and take out loans. Considering how volatile the crypto market is, most of these loans are over-collateralized. Depending on the amount of loan, the borrower is required to top up their collateral or repay a portion of their loan to avoid liquidation. 

In Ethereum – where accepted collaterals are ETH and its token, the lending sub-sector is part of the open finance, or DeFi, movement. According to BTC PEERS, DeFi will likely see more investment as crypto and blockchain “comes to age.”

The coronavirus pandemic is helping draw attention to crypto lending. Digital asset lenders, through DeFi, are earning decent returns from their activity. However, in Ethereum, the ability of users to borrow loans using coins other than ETH and ERC-20 tokens is limited.

Bringing Crypto Lending to the Mainstream

SpectroCoin is bringing crypto lending to the mainstream and supports more coins beyond ETH. The platform lists several coins and fiat including the Euro, BTC, ETH, XRP, XEM, and DASH. 

Users can also borrow from as low as €25 to €1 million with options of withdrawing using the Euro or any of the supported cryptocurrencies including BNK, BTC, and others. Once a loan is approved, it is disbursed to the borrower’s account.

From their homepage, users can also select their interest rates to be in Banker Token (BNK). Using the BNK token draws lower interest rates. Also, customers can earn and save using the BNK token. Interest payments are automatically debited every month while the loan is repaid manually on the platform.

Loan-to-Value (LTV) For Risk Management

Clients can borrow up-to 75 percent of their collateral’s value. The Loan-to-Value (LTV) in SpectroCoin is between 25 to 75 percent. 

The higher the LTV, the riskier it becomes for the crypto lending platform but the higher the loan a customer can borrow using their crypto collateral. 

Crypto lending platforms like SpectroCoin don’t perform background and credit checks and anyone can borrow. Therefore, as they issue out loans, LTV is used as a risk management tool and estimates the value of the collateral a borrower must deposit to be granted a loan. 

As an example, if a user wants to borrow $500, he/she must deposit $1,000 worth of crypto as collateral if the LTV is 50 percent. The LTV is frequently updated to reflect the state of the market. 

When there is a misalignment, the borrower is required to deposit more collateral or repay part of the loan by selling the cryptocurrency deposited as collateral. Failure triggers an automatic liquidation of the collateral. 

In SpectroCoin, the lower the LTV, the lower the interest, and the more coins there are supported as collateral. For example, a borrower wishing to withdraw over €5,000 in loans at an LTV of 50 percent can deposit either BTC or ETH as collateral and pay a 12.95 percent interest. Borrowing the same amount with an LTV of 25 percent draws an interest of 6.95 percent with several assets available as collateral including ETH, BTC, DASH, and XEM.

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How Market is Shaping Up

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With the 2024 halving still about 1198 days, the stakes seem higher, perhaps because of the volatility of the trading market in 2021.

No sooner will a person start talking about the crypto world before the Bitcoin halving is mentioned. It is a major event with a significant impact on cryptocurrencies generally – and has been from the onset. The idea, factored into the design of the crypto asset by Satoshi Nakamoto, helps manage the inflation of the asset.

Unlike Ethereum, only about twenty-one million BTCs can be mined based on the design algorithm. Interestingly, estimates suggest that 98% of this will have been mined by 2030. Thus, after every 210,000 blocks, the reduction in the number of new Bitcoins that can be mined per block is triggered. Consequently, the amount of rewards earned by miners is reduced.

So far, the halvings have been greeted with significant media attention. This is particularly true of the months that lead up to the halving. From a price of $2.55 before its first halving in November 2012, BTC rose to about $1037 a year after. A similar trend continued after the second halving in July 2016, with BTC rising to $2525 exactly a year after.

Despite the coronavirus pandemic, the third halving happened in May 2020 with the price of BTC at $8600 and six months later, the price was over $15,420. By and large, the market has run exactly as some have predicted with prices falling just before the reductions and then rising to new heights after the halving is completed.

Bitcoin Enthusiasts Remain Excited about Halving

The reduction in the Bitcoin supply has always been greeted with excitement and speculation. The last halving was watched online by 7000 people on Bitcoin Magazine’s live stream. This was even as CoinMetrics co-founder Nic Carter, Messari CEO Ryan Selkis and Kraken content producer Pete Rizzo, celebrated the halving.

With the 2024 halving still about 1198 days and 5 hours away at the time of writing according to CoinMarketCap, the stakes seem higher, perhaps because of the volatility of the trading market in 2021, but the excitement is no lesser.

Against the current trend, many experts remain optimistic that it will an uptrend. Analyst PlanB expects the price of BTC to soar to $288,000. Senior commodity strategist at Bloomberg Intelligence, Mike McGlone, also predicts the market will correct for a bullish trend. Billionaire Tim Draper has also stuck to his guns about the direction the market is headed.

It’s safe to say that the jury is still out on whether this upcoming halving. The question in the mouth of many Bitcoin investors and speculators is: “Will it follow the type of growth in previous halving?”

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An experienced writer and Fintech enthusiast, passionate about helping people take charge of, scale and secure their finances. Has ample experience creating content across a host of niche. When not writing, he spends his time reading, researching or teaching.



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Hollywood Actress Mila Kunis to Launch NFT Animation ‘Stoner Cats’

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Mila Kunis was recently seen commenting how the blockchain domain is empowering and needs more exploration to seek better results.

Following the current trend in crypto marketing, Mila Kunis is all set to launch stoner cats- an animated web series where people will buy NFT tickets as tokens to watch the show. The proceedings collected via NFT will be utilized to produce more episodes of the web series.

The actress further highlighted how the ongoing pandemic situation made her curious about the growing crypto market and compelled her to dive deep into the sources to know more about the Bitcoin agreements and daily transactions.

Mila Kunis to Launch NFT Tokens as Tickets to Her Web Series

The actress famous for her roles in “The 70s Show” and Family Guy had made an appearance in the Conan O’Brien Show where she announced how the web series Stoner Cat will be making use of Crypto devised NFT as access tokens to buy tickets. The funds collected through these tokens will later be used to produce more episodes for the show.

Kunis also clarified that the time during the quarantine made her research more about cryptocurrency and its related aspects. The show primarily will use blockchain technology to make people aware of how crypto can be used in day-to-day proceedings.

The project will center around five house cats who repeatedly save their owner from impending mishaps. Kunis also stated how the concept of the show has taken inspiration from the CryptoKitties which were first released in 2017 and were quite impressionistic NFTs to have ever been invented.

Mila Kunis Partners with Cryptokitties and CryptoPoops Founders

Mila Kunis in an endeavor to deliver the NFT services backed tokens had partnered with leading brands like CryptoKitties and CryptoPoops Founders Mack Flavelle and Jonathan Howard. Kunis also described how through these tokens, she intends to deliver the best possible content in the form of entertainment and fun.

The price of the tokens is yet to be determined, however, the prices of NFTs popular among celebrities had been interpreted in millions. According to Kunis, the show is set to premiere in July.

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Juhi Mirza is an archaeological major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.



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Tanzania’s First Female President Wants the Country to Go Crypto

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Samia Suluhu Hassan, the president of Tanzania, is striving to embrace cryptocurrency with open arms. This move follows that of El Salvador adopting Bitcoin as legal tender. 

No doubt the World Bank will not be happy with yet another developing nation jumping on crypto. However, when large swathes of your population is unable to take advantage of the world’s technology boom, any way of jumping in seems like a good idea. While Tanzania doesn’t want to adopt Bitcoin as currency right away, President Hassan directed the Bank of Tanzania to prepare for crypto to come to the country, saying they should be ‘ready.’ 

At the same time, actual cryptocurrency traders in Tanzania remain bearish on the president’s desire for Tanzania to go crypto. Their experience has taught them that there is nothing like experience.

Education is the key


They’re right. Cryptocurrency education should be the prime focus, and many believe that it should come from the country’s central economic authority. Especially when the nation has such a young population, it’s easy to see why the government is on board.


One challenge President Hassan faces in Tanzania is overall crypto acceptance. Much of this relies on education and bipartisan support in the nation. One important note is that President Hassan took power after the late former President John Magafuli died from heart complications on March 21, 2021. 

It is unlikely that former president Magafuli would have been as open to adopting crypto, citing his notoriously hard political stances. So far, President Hassan has not mentioned anything regarding environmental concerns. Developed nations are saying the same thing, but most of them are focusing on creating their own digital fiat coins.

In a nation primarily focused on agriculture through overwhelming dependence  and is classified as a “lower-middle income economy. In 1985, the nation began transitioning from a socialist-based command economy to a market economy. After this overhaul, Tanzania’s GDP increased in 2014 by a whopping 1/3 to $41.33 billion. 

If the country’s desire to become economically viable in the modern geopolitical landscape continues, then adopting crypto makes sense. However, just like El Salvador, which has a notoriously low internet connectivity rate, Tanzania faces similar socio-economic issues. A plan to adopt crypto en masse in the nation would have profound reprocussions, and no doubt many people would be left out of the loop while a select few see the most gains. 

Conclusion

As more developing nations realize the potential from cryptocurrencies such as Bitcoin, the push to get crypto exchanges and services will elevate the crypto world. Only time will tell developing nations going crypto will have adverse effects. 

While the World Bank might be scared of cryptcurrency’s decentral nature, the United Nations is not. The international body believes that researching blockchain is a step in the right direction. What kind of support would Tanzania receive from the UN on this?

That’s a good reason to watch this story closely.

If anything, a little bit of short-term economic pain might yield massive economic gains for places like Tanzania over the next several decades. Crypto has a high barrier to entry for anyone. It doesn’t matter if you’re a country, a company or an individual. 

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