SME Focused P2P Lending Crowd Genie to Build Blockchain Asset Exchange
Originally published on: CCN
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January 08, 2018
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As peer-to-peer lending revolutionizes much of the finance industry, Crowd Genie, a Singapore registered P2P lending platform, presents its vision for an Asia-wide blockchain asset exchange with an ICO this month. The entire ecosystem consists of three parts – Digital Passport, Tokenized Lending and Asset Exchange. The Crowd Genie Asset Trading Exchange will democratize trading and allow asset fractionalization and investment in infrastructure, stocks, cryptocurrency, and bonds across Asia and the world.
P2P Lending Expands
Peer-to-peer lending has become the best way to finance debt, enabling loan seekers and providers to borrow or lend without an intermediary.
The process also provides a faster system of authorization compared to the traditional lending industry.
The P2P lending industry is currently expanding at a rapid pace because it gives small businesses access to credit that they normally don’t have. Small businesses only get 25% of small business loans in the U.S.; three quarters of small business loans never get approved.
On the flip side, retail investors are discouraged in the existing lending market. The average investor needs a minimum of $200,000 to invest in a small part of a loan. Fees for bonds and funds that invest in smaller amounts are high and consume a high portion of the yields.
In addition, the pricing of traditional lending is not transparent. The pricing is often based on what an investment manager or bank considers the lowest price they think the borrower can tolerate.
With blockchain technology, people in different countries can view and assess borrowers, while the cross-border market ensures that the borrowers can achieve a fair interest rate.
Blockchain technology will also encourage nano-size lending, as tokens can allow a loan to be broken into as small a size as necessary – such as $100, and be managed cost effectively. A small lender can invest in a loan and not be charged high fees and make a good return on the investment.
Blockchain technology also provides reconciliation and transaction handling that banks presently perform, but at a much lower cost.
The Crowd Genie ecosystem includes a digital passport on the Ethereum blockchain that verifies both borrowers and lenders, for whom it provides instant blockchain based transactions.
The Case For Crowd Genie
The Crowd Genie ICO claims the following attributes:
Partnership: Crowd Genie works with the top five legal firms in Singapore as well as a reputable KYC provider and a regional debt collection agency.
Regulated: The company is regulated with the Singapore MAS, holding a “Dealing in Securities” license that affirms its internal operations process is compliant and robust.
Operational: In the past 12 months, Crowd Genie has achieved a 22% portfolio return and a 0% default rate with a portfolio worth $1 million.
Protection: The company is among the first if not the first in Asia to provide provisional fund “GenieShield” as an initiative to protect lenders in the event of a default or delay.
Efficient: An artificial intelligence engine extracts data and accesses the borrower’s credit worthiness that constantly back tests and rebalances.
Revolutionary: Crowd Genie has an end-to-end lending without borders solution from integrating digital passport, tokenized lending and asset exchange blockchain.
ICO To Begin
The soft cap is set at 20,000 ETH and the hard cap at 100,000 ETH. Once the soft cap is met, the ICO will be completed.
Additional funds will be utilized to expedite expansion into other regions such as applying for securities licenses in other countries, setting up new offices, recruiting more experts and expanding the loan book.
Only Ethereum (ETH), bitcoin (BTC) or USD via PayPal or debit/credit cards are accepted.
The Pre-ICO will end on Jan. 31 and the crowd sale will end on Feb. 28, 2018.
Bonus rates are as follow:
Pre – ICO : 50%
Day 1 to 14 : 25%
Day 15 to 21 : 15%
Day 22 to 29 : 5%
The token sale will be run by an Ethereum smart contract.
Funds will be allocated as follows:
• 45% on listings investment
• 30% on hiring and team expansion
• 10% on regulatory and compliance expenses
• 15% on business development and other overheads
When the ICO ends, CGCOIN token holders will be able to use the tokens by converting them into fiat on any of the exchanges where CGCOIN is listed, then use the funds to invest in listings on www.crowd-genie.com (Terms and conditions apply).
The portfolio return to date has been 22%.
ICO Referral Program Added
Crowd Genie recently launched an ICO referral program to reward those who spread the word. The referral bonus is 5% through Jan. 31. Participants have the opportunity to earn a higher referral fee each time a referral purchases tokens in the new year. Participants must encourage friends to buy the tokens before Jan. 31, 2018. The payment for the referral fee will be in the same currency as the one used to purchase the tokens. This is unique, as most ICOs pay in tokens only.
To learn more about the referral program, visit https://medium.com/@genieico/launch-of-genie-icos-referral-program-12b192b2ee12