Trade Secrets Revealed in The South Korean Roadshow
“ASIA BLOCKCHAIN CORPS” summit was held in Seoul, South Korea Yesterday. This 200-seat available conference was occupied by 250 participants from many countries. Projects are hotly welcomed and organizer had to give office area away. As the first speaker, Oscar, founder and CEO of LendChain delivered a speech “In fact, you are not a good cryptocurrency investor” and published trade secrets which never been mentioned even in whitepaper before. Korean MTN 머 니 투 데 이 TV interviewed Oscar and played his presentation.
Oscar firstly mentioned several pain points. Experienced heaven research work, he finally reveals reasons behind it:
- Individual investors have no better choice except cashing out to turnover.
- Individual investors have to put their believed cryptocurrencies into wallets or exchanges, lacking crypto based on financial products.
- Individual investors have to sell EOS for GXS when they expect an inflation.
- Under current bear market, Token Fund are not willing to sacrifice vested interest though there is not enough cash flow.
- To maintain daily operation, sometimes projects have to get sacrificed or accept ETH payment.
- Normally, ETH raised can support two years expenses. Such idle assets actually can be used for an investment with low risk.
- Quantitative fund and market maker require large amount specific token. There is no better choice except from secondary market
- Lacking fiat based profitable financial products for traditional investors.
- Afterwards, Oscar talked about how LendChain can solve pain points above and introduced the working mechanism of LendChain.
User suffered from point 1& 3 mentioned above can mortgage token in LendChain and borrow cryptocurrencies like BTC, ETH and USDT, which can solve point 2; Enterprise suffered from point 4 can mortgage token listed and circulated in LendChain and borrow BTC, ETH, which can solve point 2 & 6; Enterprise suffered from point 5 can mortgage ETH in LendChain and borrow USDT for daily expenditure, which can solve point 8 and requirement of traditional P2P investors；For enterprises suffered from point 7, LendChain will do lots background research work including team security, investment ability and past investment income. Pick quality team and strictly control their financial leverage and lending quotas.
By designing a good mechanism, LendChain perfectly solves many pain points existed. However, several issues like how LendChain can ensure assist security once default or slump occurred? Oscar replied to MTN 머 니 투 데 이.
“First, we provide hot & cold wallet, most of assets, especially for mortgaged assets, can be deposited in various cold wallets. For assets user has already, we will daily transfer to financing party. Hot purse will be used for change transaction. In the future, LendChain will use smart contracts to manage mortgaged assets, with publicly available links and opened code.
“In case of defaulted, mortgaged assets must be double worth of, which means you mortgage 20,000 can borrow 10,000. LendChain will enforce assets delivery once someone denied. What is more, additional margin will be asked once price fall 30%. If that failed, assets delivery will be forced when price falling 50%. Maintain assets security is LendChain’s first priority.
After that, Oscar talked about the horizontal comparison between LendChain and other rival products and what advantages they had. And what resource advantages does LendChain have?
There are more and more borrowing projects recently. LendChain started since last year and takes the lead currently. Following are comparison from five dimensions.
- Mortgage loan
This is the core business of every borrowing projects and many projects are fiat based. LendChain only focuses on crypto which can occupy global market quickly and avoid policy risks. Meanwhile, we can meet different requirements by supporting various cryptocurrencies and improve crypto – crypto based financial services.
- Credit loan
No one dare to do crypto based credit loan because this is different from fiat. However, multi-dimensional credit data of GXChain and Blockcity can provide LendChain a strong foundation. LendChain will ask users to authorize their data, combined with their behaviors on LendChain, LendChain will do risk control model and determine the credit line. Normally, mortgage is needed twice as collateral which is 50% mortgage rate. If you have good credit, you can get 60%, 70% or even 80%. This is something that others cannot do.
- Financial products
Financial management is the core business of LendChain, which is a great potential demand in the market. If you compare to others, only ETHLend is barely is, and only supporting ETH.
- Platform traffic
For both lending and financial services, we cannot without flow support. After all, this is a traffic business and banks either. Several others have been doing this for a long time, but only few people in this circle know. However, LendChain supported by 2 million real-name verified uses from Blockcity, Bitpie and 10,000 global users from QuarkChain, all of these can provide LendChain powerful flow support in the early development.
- Equity transfer
This feature will be launched after platform developed stably. For example, if you lend 10,000 USDT at LendChain for a year, then this equity can be transferred on the platform, or remortgaged to meet your liquidity needs.
In terms of the resources of LendChain, we have begun to cooperate with GXChain, PreAngel, QuarkChain and Bitpie. Blockcity, which is now opening to all users, will increase its exposure in the near future. PreAngel has started to introduce many high-quality projects it has invested in to LendChain, which will make LendChain more powerful. The strategic cooperation of QuarkChain is set up by Wang Lijie, the founder of PreAngel. We plan to officially launch QKC in LendChain next week. We will also launch Bitpie APP next week. Later, we will conduct deeper cooperation to provide better experience for both users.
When talking about the progress of LendChain, Oscar published the operation data of internal test and public test: 8953 registered users, 880 certified users and a total investment of 850,000 US dollars. However, the official promotion has not started yet, LendChain have been partnered with five companies. The iOS version of the APP, which was originally expected to be launched in July, was launched on 27. LendChain also announced airdrop plans in next week, but did not reveal details, waiting for an official announcement.
“Financing progress, currently, LendChain has completed the cornerstone round and private sale round, compared with recent lending business based new projects, they raised almost $100 million in the first place. However, valuation of LendChain is very low, which is 200 K – 300 K ETH. Only qualified investors or resources providers can get. Many KOLs participated, because what LendChain needs are resources.
“We are not worried that investment institutions and private equity investors will crash the market. The first is that our valuation is low which is not cheating. Second, for each agency, we have limited investment quota in 100-500 ETH, this is poor in contrast with other projects, their quotas are mostly 800, 1000, 2000 and 5000 ETH. If they sell, they can only earn several hundred ETH. So, they had no incentive to cash out immediately, in this way, we let them hold for a long time and help us.”
“In the case of public sale, we expect to start in the middle of July, Token price is 0.2 yuan, and strict KYC is carried out to exclude users from China and the United States.”
At the later roundtable meeting, the web celebrity host in Korean cryptocurrency circle raised several very sharp questions, which caused heated discussions among all speakers.
Host: “is there a bubble in the blockchain? How do you view the irrational investment behaviors of some blockchain investors?
Oscar: “there must be a bubble, especially at the end of last year, because so many speculators were involved. But currently, the market has lost its quick money effect, and most speculators have left in the last few months. As for irrational investments, ‘investment losses come from a lack of understanding,’ as one bigwig put it. It is irrational to follow a project blindly because of some big institutional investment or bigwig. Big institutions indeed do better when it comes to investment projects, but they also invest in bad ones.I suggest you start with the basic knowledge of blockchain and take responsibility for every investment you make.”
Host: “at present, the blockchain investment market is too hot, but the future must be good money to drive out bad and value return, how do investors distinguish good money from bad?”
Oscar: “compared with article or bigwig standing out to raise a lot of money last year, the bad money has been much less, especially those air projects. Currently, you can see which projects are still work hard. And the other thing is, what this project does, whether there is a market in the future, whether it can be landed, maybe it’s too professional for ordinary investors. And you can also look at the product that he’s making, whether you’re going to use it yourself, whether anyone around you is going to use it, and that’s one important criteria. Many investors and institutions want to use it when we still in internal test period, the same as those friends who dedicate to cryptocurrencies and traditional financial management. The pain point is that real. If you just want to make some money, hold our Token, a bull market is enough. But if you want to do shareholders of this cryptocurrency bank, you need to hold it for long time. This is a tremendous market and currently, only LendChain is the most professional. As far as LendChain has so many channels and resources, it can erect trade barriers in the shortest time.”
After the meeting, LendChain reached in-depth cooperation intention with a number of south Korean media, investment institutions, Market companies, KOL and Huobi Korea. They all favored LendChain and will provide various resources and assistance.