P2P lending platforms are to eventually form the backbone of the future banking system that will be fully decentralized and fair for everybody. P2P lending is something previously considered as an idealistic concept with no real chance to become a reality, but since the advent of Bitcoin and Blockchain Technology, this idea has become closer than ever to realization.
Cryptocurrencies like Bitcoin, Ethereum, Ripple and others ensure that people can store their money inside a digital wallet in any quantity they choose. They can also lend it to someone else by P2P, thereby completely bypassing the third parties and financial institutions. Banks and other entities are notorious for their lending practices and unfair terms that one has to sign in order to get a loan. They can easily repossess the borrower’s house in case of his not paying back, without wasting a day on doing it.
Blockchain-based P2P financing platforms provide an alternative in which people can get money from other lenders at their own customized rates and conditions protected by the power of the blockchain.
Fintrux is one of such platforms, and it has recently announced the company’s raising over $12 million in public token generation event, which was held from January 7 to January 21, 2018. Since the successful completion of puplic TGE, the platform has doubled its soft cap for the main TGE continuing to move on to bigger and better things.
Current crypto lending systems involve the need of a collateral – some kind of equal amount of cryptocurrencies or assets against which a lender gives loans. Fintrux goes the other way allowing global entrepreneurs to quickly secure affordable loans with no collateral needed. The no-collateral system is leveraged using an open ecosystem of partners and credit enhancers that reduce the complexity and risks of unsecured loans. With the risks being lowered, Fintrux aims to offer reasonable and affordable interest rates for entrepreneurs around the world.
The project is backed by one of the leading tech companies – Robocoder Corporation based in Singapore. The aim is to provide an open platform mitigating three mortal issues for small startups. They include lowering of interest rates, covering defaults with layers of insurances and thus neutralizing credit risks for investors. Fintrux also partners with Cynopsis Solutions, Bloom and Datawallet.
Fintrux TGE has performed impressively with over $12,000,000 raised during the Pre-TGE. The overall goal had been initially estimated at $25,000,000 and now the team is looking forward to raising the minimum soft cap at double rate.