Karma is a new, cryptocurrency-based peer-to-peer lending platform that has plans to create a global lending marketplace to aid small and medium-sized enterprises (SMEs) gain access to funding at affordable interest rates. The Karma platform is crowdfunding development by holding an ICO for its own proprietary cryptocurrency, the Graphene-based Karma Coin (KRM).

What Is Karma?

Karma was founded by George Goognin and Artem Laptev, Russian-based executives with expertise in blockchain development and peer-to-peer lending. The company also has connections to Graphene Lab, the development company responsible for Graphene, a blockchain technology that serves as the basis for the bitShares cryptocurrency.

Karma Product

Karma’s main goal is to create a worldwide platform for peer-to-peer lending, with a stated goal of connecting borrowers in countries that do not have access to low-interest loans to lenders in countries that are willing to provide such loans out of their own funds.

Karma will hold an ICO on November 27, 2017 in order to crowdfund development. At that time, investors can purchase 1 KRM for $0.01 USD. Investors can use Bitcoin, Ethereum, or US dollars to make purchases of Karma Coins until December 10, 2017 or when the number of available KRM is exhausted, whichever comes first.

Karma Opportunity

Opportunities presented by Karma for investment are geared generally in the direction of those who wish to utilize it for its intended use – as a peer-to-peer lending platform. Individuals who acquire large amounts of KRM before launch will position themselves as some of the first lenders of the platform, placing them in an advantageous position compared to lenders who join the platform after them.

Additionally, investors interested in using KRM as a speculative endeavor may also benefit from early adoption, especially since the cost per coin is rather low. Opportunities for value growth will, of course, rely on widespread platform adoption.

Karma Conclusion

Karma seeks to solve a global problem – lack of access to investment capital for SMEs, especially those in locations that would otherwise have no option but to rely on local lenders that charge exorbitant interest rates. Using cryptocurrency as a way to do this – providing a universal, blockchain-based currency that transcends borders – has the potential to be an effective way to solve the problem.

The only real obstacles we see with Karma as a platform are twofold: widespread adoption and enforcement of loan repayment. Karma isn’t going to flourish without a large number of global users taking out and repaying loans, and it’s also not going to flourish if there’s no recourse for borrowers who default on their loans. Karma says that its lending services will not be available in countries that will not recognize its loans as valid electronic contracts; this may mitigate the risk of not being able to seek redress for default, but the other risks remain intact.

With Karma’s ultra-low coin price, it’s not much of a risk to investors unless you’re planning on buying mass quantities of coin. That being said, every ICO has at least some risk associated with it; invest wisely.

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