Lending platforms have been appearing thick and fast in the initial coin offering ecosystem recently. These platforms are an interesting variation on high yield investment programs, and are essentially speculative managed investment funds dressed up in slick marketing with an initial coin offering spin.

Despite their slick appearance, lending programs can be both good and bad. These platforms are often needlessly complex in an attempt to obfuscate their essential nature, which is a high risk speculative investment.

Lending ICOs typically work like this: Investors purchase tokens during a crowd sale, which then entitle them to a guaranteed return on interest at a set rate in accordance with the amount of tokens purchased over a set period of time. While not all lending ICOs are shady, there are a couple of key points that should be identified in order to ensure you’re not getting involved in a shady Ponzi scheme.

Historically, high yield investment programs an umbrella classification that lending ICOs fall under- operate by using new investor funds to pay out legacy investors until either the creator disappears with the capital, or the entire system collapses. This isn’t to say all HYIPs are fraudulent or doomed to failure, but it’s important to remain aware when assessing them for investment.

Overall, when assessing a lending ICO, it’s critical to remember that you’re entrusting your capital to a third party that will then use it to fund aggressive and speculative investment endeavors. This practice is obviously fraught with risk, so it’s important to critique the creators of lending ICOs closely.

In this article, we’ll be taking a look at the TEX Lending Platform initial coin offering. The TEX platform is unique in the word of lending ICOs, as it actually provides a pretty clear explanation of how the profits it promises are generated.

We’ll assess the services offered by the TEX Lending Platform and take a close look at the TEX Lending Platform white paper to help you determine whether it’s worth considering as an investment.

What Is The TEX Lending Platform?

The TEX Lending Platform is described as a worldwide community-driven decentralized crypto currency that provides individuals with the ability to store and invest their assets for a substantial return. In simple terms, the TEX Lending Platform provides users with the ability to sink their capital into a managed fund that could potentially deliver a high return.

Importantly, TEX provides an explanation of how they generate their profits. The primary investment used by the TEX Lending Platform to create profit is through a trading bot and through cloud mining, although their portfolio does include an exchange service.

TEX doesn't provide any specifics on how their trading bot operates, which is somewhat concerning. The platform promises returns of up to 45% per month depending on the size of the user’s initial investment.

How TEX Works

Using the TEX Lending Platform is relatively easy. Returns are calculated on the TEX Lending Profit Interest scale, which provides volatitly software interest plus a small additoinal ROI ranging from 0.12% to 0.27% depending on total investment amount.

Invesment of less than $1,000 are restricted by a capital back term of 259 days, which is rather lengthy. Investment between $1,000 and $5,000 provides a 189 day capital back term, while investment between $5,000 and $10,000 provides capital return in 140 days. Lastly, any investment between $10,000 and $100,000 provides capital back in 99 days.

The TEX ICO

It’s important to remember that while the TEX Lending Platform may be dressed up as an initial coin offering, it really isn’t much more than a high yield investment program. That said, the purchase terms are similar in operation to that of an ICO.

The TEX Lending Platform ICO is currently underway, and has already sold 4.4 million tokens. An additional group of 4.5 million tokens is currently available for purchase, with a final lot of 5.4 million tokens available for purchase from the 5th of December 2017 to the 10th.

TEX Conclusion

The TEX Lending Platform doesn't offer much to separate it from the other lending platforms launching via initial coin offerings at this point in time, and delivers only scant information on the methods used to actually generate the profits it promises.

When assessed as an initial coin offering, the TEX Lending Platform falls short. Viewed from the perspective of a high yield investment program, however, the TEX Lending Platform is a reasonable offering. If you’re interested in a high risk, high reward investment that could potentially provide a decent return, the TEX Lending Platform is worth considering- although it’s important to keep their lengthy capital return timeframes in mind.

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