Investing in promising blockchain startups is now possible without selling your own cryptoassets. The CoinLoan lending platform is announcing a use case on how to acquire tokens while keeping HODL due to the coming IEO token sale of Paytomat, cryptocurrency payment solutions company.
In this article, we’ll see why IEO as an alternative token sale format is worthy of your attention. Next, we’ll calculate how crypto-backed lending helps to maximize profit from such an investment.
Why Join IEO?
Planning to expand, Paytomat chose a new model of token distribution, IEO or Initial Exchange Offering. IEO engages exchange as a major partner and a platform for token sale while ICO assumes listing of the token post factum. Paytomat issues PTI tokens and sends them directly to the EXMO exchange.
The benefits are obvious. Compared to ICO, the project doesn’t have to wait for listings. It taps into the user base of exchange and reaches a wider audience instantly. Moreover, exchanges do their due diligence when choosing a project to list. They make their own researches on risks, startup’s financial condition, market position and so on. It cuts off scams and restores trust in token sales.
Why Borrowing Instead of Buying?
The token acquisition model proposed by the CoinLoan platform offers all participants to borrow fiat funds instead of spending their own crypto assets. This creates a win-win situation for the investor, as it allows to earn more and creates a safety bag for the worst case scenario. Alex Faliushin, co-founder and CEO at CoinLoan, argues that crypto-backed loan is a perfect choice for each investor who holds crypto.
“Let’s say you have 0.5 BTC currently traded for 2,000 USD,” suggests Alex Faliushin, co-founder and CEO at CoinLoan. “Selling it, you can buy 407500 PTI. Or borrow 1200 USD against this crypto to buy 244500 PTI. The second option doesn’t look convincing, but let us rather calculate.”
“In an optimistic scenario, when in one year both BTC and PTI doubled in price you still have 0.5 BTC worth 4000 USD now and 244500 PTI estimated at 2400 USD. It’s 6400 USD altogether, minus 1320 USD you’re to repay for a loan. Net profit is 5080 USD while selling your BTC you’ll gain 4000 USD only,” Alex Faliushin adds.
Alex says that it’s also beneficial to use crypto-backed loans to protect yourself in case of risky investments.
Payomat IEO starts on April 1 and will last for three days only. So it’s time to use the opportunity and try a crypto-backed borrowing use case. Sign up to the CoinLoan platform now and invest in tokens without selling your cryptoassets.