INLOCK Blockchain Project Opens Its P2P Crypto Lending Program, Does Over $350K In First Day
INLOCK Launches Their P2P Crypto Lending Platform
The launch of a platform for P2P cryptocurrency lending was announced today by INLOCK, to aid utilization of cryptocurrency holdings by their retail investors.
INLOCK stated that the Platform will increase the buying power of cryptocurrencies, as any user with crypto assets not willing to spend, is still able to loan out the digital assets. This function improves market liquidity and enables long-term investors to utilize their assets.
The CEO of INLOCK Csaba Csabai gave his opinion on this new platform saying that,
“We have seen far too many examples of people selling Bitcoins to finance their short or mid-term investment goals only to witness the price skyrocket in the following days – especially during 2017. Of course, nobody is able to predict the future, but the next best thing is to keep your options open.”
Surge In Demand For Cryptocurrency Loans
INLOCK stated that within the first day of the launch of the P2P platform, 1220 loan contracts were concluded, totaling over $350,000 in value. The company also recorded a 5.8 annual percent range (APR), with a peak at 8%.
The CEO added that,
“We receive an overwhelming amount of loan requests from entrepreneurs, business owners, and traders for this very problem on a daily basis.”
Reliance On Market Forces
To reduce any concentrated market influence,
interest rates of the P2P lending platform, are decided upon by forces of demand and supply. The company’s business development strategist David Sabo, explained this by saying
“Market competition creates the balance between the Lenders profit requirements and the Borrower’s demand for reasonable interest rates. It beats all artificially steered models – it’s all the control we’ll ever need”
Even though the general cryptocurrency market value depreciated since the beginning of last year, Crypto lending business still seems to be successful. Only last month, the New York City-based company Genesis Capital, declared that it’s executed loans were worth $425 million in the first quarter of this year alone, with this years total running up to $1.53 billion already.