LoanBit is a decentralized bitcoin lending platform where you can earn money by lending your bitcoin to other people. Find out how LoanBit works today in our review.
What is LoanBit?
LoanBit is a lending platform created by an Australian startup called LoanBit Proprietary Limited. The platform is designed to work as a mediator between bitcoin lenders and businesses looking for short-term loans in bitcoin.
The primary goal of LoanBit is to lend money – in the form of bitcoin – to SMEs who are in need of short-term loans to expand their business. These businesses typically struggle to work with traditional financial institutions because banks take a long time to approve a loan. LoanBit, on the other hand, ensures businesses can get their funds within three business days.
To lend money, LoanBit uses its own financial resources as well as funds collected via its online platform. These funds are used to loan money to SMEs.
As a LoanBit user, you can make money by registering for LoanBit, depositing bitcoins into your account, then placing them in a loan pool where they’ll receive a stable daily return.
LoanBit claims to pay users 2% daily interest with a minimum investment of 0.01 BTC. With an investment of 50 BTC, you’ll earn guaranteed daily returns of 4%.
Obviously, you should be skeptical any time somebody promises you a guaranteed daily interest rate as high as 2% – especially in the bitcoin community. This is the tactic used by pyramid schemes and multilevel marketing scams, so let’s take a closer look at how LoanBit works to see if it’s legitimate.
How Does LoanBit Work?
LoanBit promises to offer you a guaranteed daily interest rate of 2% to 5%, which adds up to triple or quadruple digit guaranteed returns per year. You can invest in LoanBit for as little as 0.01 BTC.
Obviously, when someone is promising you returns of 700% to several thousand percent per year, you should be skeptical. This is a tactic used by bitcoin scams to convince people to join. They lure people in with promises of high returns, accept their deposits, and then make it difficult – or even impossible – to withdraw any money.
LoanBit is a relatively new website. We can’t find any reports online of people successfully withdrawing money from the platform. Typically, with HYIP schemes like this, they make it really easy to earn money, but really difficult to withdraw it. Until you can find a confirmed report of somebody successfully depositing money into the platform, then withdrawing it, it’s hard to take LoanBit’s information at face value.
Meanwhile, LoanBit doesn’t exactly convince us that it’s withdrawal process is easy. Here’s how they explain the withdrawal system:
“Once your earning has been credited to your account – you’re free to place a request to be processed immediately – no delay nor extra fees are applied.”
It’s important to note that LoanBit doesn’t say that you’ll be able to withdraw your money at any time: they just claim that you’ll be able to place a request to withdraw your money.
The more we look at LoanBit, the more we’re convinced it’s a scam. Nevertheless, here are some of the features advertised by the platform:
Low Entry Level: Any registered user can start as low as 0.01 BTC.
Stable Income: LoanBit guarantees returns of 2% to 5% per day and claims to give users “full control” over their funds.
Affiliate Program: LoanBit offers a three level affiliate program, where you earn 4% commissions on the first level, 2% on the second level, and 1% on the third level.
How can LoanBit lend money to SMEs while simultaneously giving users full access to their funds? I guess you could ask banks the same question. However, it seems like LoanBit is some type of Ponzi scheme or high yield interest program instead of a legitimate lending opportunity.
LoanBit offers four different entry packages, including:
Start: 0.01 to 0.29 BTC
Daily ROI of 2% per day for 7 days
114% gross return
Medium: 0.30 to 14.99 BTC
Daily ROI of 2.5% per day for 14 days
135% gross return
Business: 15 to 49.99 BTC
Daily ROI of 3.0% per day for 21 days
163% gross return
Corporate: 50 to 249.99 BTC
Daily ROI of 4% per day for 28 days
212% gross return
Who’s Behind LoanBit?
LoanBit claims to be a legitimately registered Australian company. The company lists an address in Canberra (17/7-17 Bunda St). They also have an Australian company number (610 418 794).
A quick Google Search for that address shows that it’s been connected to a company named Crypto Finance Group Pty Ltd, although it’s not totally clear if the company has a physical location at that address. That business number, meanwhile, is also linked to CryptoFinance. However, the company number is only listed on the CryptoFinance website, and we can find no evidence that the number is linked to a legitimate Australia-registered corporation.
The only other contact information we have for the company is an email address: [email protected]
Typically, one of the easiest ways to spot a bitcoin scam is when a business pretends to be legitimate – yet refuses to disclose any information about itself, its management team, or its personal history. That means the company is likely getting ready to shut down in the future – and they don’t want anyone to trace them.
In any case, the LoanBit.net website was registered on February 16, 2017. The latest version of the website, which features the HYIP scam, only appeared online on September 10, 2017 – so it’s brand new.
Conclusion: Is LoanBit a Scam?
Yes, LoanBit appears to be a scam, based on all of the information we can find online today. The company refuses to disclose any information about itself or who’s running the company. It appears to list a fake address and a fake business number. The company makes ridiculously guarantees about its investment returns – including ROIs of 700% per year and more guaranteed.
LoanBit does look more legitimate than other bitcoin HYIP scams we’ve spotted online in recent months. somebody has clearly put some time into making the site look legitimate. However, at the end of the day, LoanBit is just another pyramid scheme, multilevel marketing scam, or HYIP scam.