It only takes a brief look at the cryptocurrency market capitalization, the charts along with the history realizes that most of these currencies (Bitcoin, Ethereum, Litecoin, Monero, and other major cryptocurrencies) are showing a meaningful growth in value and a promising expectation to keep growing in the future, causing a loss of faith in the traditional monetary systems and turning up the confidence in the power of blockchain technology. However, these cryptocurrencies are not proving to be very effective as payment methods. Their value growth has caused them to behave more as assets than currencies, to the investors and miners are pushing to hold cryptocurrencies instead of using them to buy goods and services. Users don’t have incentives to trade or sell them, as once they are traded, the owners lose their investment standing.
IMCoin has at the same time a project to build a stable and profitable business model employing cryptocurrencies as a security deposit, besides an investment asset. Our model aims to make easy access to credit for IMC holders backed by encryption guarantees, based on the security and transparency of Blockchain technology. Platforms that attempt to be a dealer for crypto-backed loans between individual, institutional lenders and borrowers generally fail to provide a solid risk management service to their clients; the volatility prices produce a substantial risk for both parties, lender and borrower. At the other case of the spectrum, most established credit channels are unwilling to accept volatile assets, like as cryptocurrency, as collateral.
Our platform will allow the loan recipients to make profits from their IMC available as a guarantee in the market price rise and as long the lenders reduce risk with the tenancy of Hybridcoins, getting benefit not only for the loan rates but from the profitability of the currency.