INLOCK, a lending platform for cryptocurrency holders, has partnered with Bitcoinist to help educate the public on the spendability problem and how crypto-collateralized loans can add stability to the global economy.
Lending is a vital function of any monetary system, cryptocurrencies included. By partnering with Bitcoinist, lending platform INLOCK is looking to get the word out on a key barrier to usage and adoption of cryptocurrencies, namely spendability.
“We have been cooperating with Bitcoinist before: a firm being helpful and professional,” said INLOCK CMO, Peter Gergo. “I’m convinced that through their network reach will raise awareness about the spendability problem and our solution.”
INLOCK enables cryptocurrency holders to manage short-term liquidity problems by taking a loan, using their existing cryptocurrencies as collateral, regardless of where price is going. On the flip side, accredited lenders can use it to provide risk-free loans to cryptocurrency holders and collect interest, a win-win for both parties.
“Lending drives growth in any economy,” explained Bitcoinist CEO and INLOCK media advisor, Norbert Radoki. “So we’re fans of what INLOCK is doing. Their service adds value to the cryptocurrency ecosystem by providing holders and businesses instant access to liquidity.”
Since cryptocurrency can be converted to local fiat currency immediately, the risks involved for the lender party are almost identical to a bank deposit. In other words, the borrower turns their cryptocurrency into liquid cash, while institutional investors can be lenders on their own terms.
“INLOCK is a solution to a common problem that most of us face day by day. The need for such is obvious and undebatable,” explained INLOCK CSO, Benedict Banathy.
‘With Bitcoinist we are in good hands’
Bitcoinist will shed light on why spendability is a key problem that must be addressed for cryptocurrencies to go mainstream. INLOCK’s approach will also be compared with similar platforms like Ethlend, Nexos, and SALT.
INLOCK CEO, Csaba Csabai, explained:
Writing about complex projects like ours requires deep understanding of technology and economy and their various contexts. Finding the right channels of communication is challenging in the ICO world – now more than ever – with Bitcoinist we are in good hands.
Banathy also adds that while taking out a loan is a pretty straightforward process, the complexity of the service on the surface “might scare” away potential users. Therefore, he stresses that the success of this project will depend on “communicating with the utmost precision.”
“Bitcoinist with many years of experience will make sure that these communicational challenges will be overcome with ease and professionalism,” he adds.
[Full disclosure: The author of this article is a supporter of the given project and is a holder of ILK tokens.]
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Images courtesy of Shutterstock, inlock.io