Have you heard the news? In Australia, the Royal Commission hosted the initial public hearing about banks not being fair to the consumers. In the public hearing, it was discussed there that consumers were not always given proper treatment and fairness about their home and car loans. Despite our confidence to banking institutions that they will practice utmost fairness, they won’t breach the law, or they will not deviate from community standards and practices, there are still some banking institutions guilty of not giving the expected hassle-free transactions to the consumers. The hearing mentioned that they received evidences from hundreds of participants but I’m sure of three things about current banking systems, not just in Australia but also in some parts of the world.
Very low interest rates on deposits
When we deposit our money to the banks, they give us our bank books as proof of our deposits. Most people think that putting their money to banks is a safe and sound investment. To people who doesn’t know current bank practices, I’ll be having a short explanation on how they use our money. Banks use our money for other investments such as the stock market, foreign exchange, insurances, and they also use our money when people borrow from them.
Banks give very low interest rates on our deposits. They’re the ones earning from our money and the interest rates are not even comparable to the inflation. It’s like putting our money to them so no one will steal it, but when you withdraw it after a year, the inflation rate is higher than the interest rates thus reducing the value of our money deposits.
Very high interest rates on loans
Despite their very low interest rates on our deposits, they ask very high interest rates when we ask a loan from them. Whether it’s a housing loan, car loan, personal loan, salary loan, and any other kinds of loan, they ask loan interest rates which are five to ten times compared to the interests we get from our deposits. Let’s say a time deposit has a 0.25 – 1.25% per annum interests, their loans ask 4 – 12% per annum. I understand that this is one of the means of making profits by banks but their interest rates are very high to common people.
No opportunity to personal lenders
Since banks are established institutions, they want to earn from their lending on their own. There seems to be no breakthrough in this kind of traditional system where personal lenders can lend to the consumers. Yes, some people can borrow an amount they need from their friends but most of us don’t have the privilege of having friends who can lend us money.
The game changer
FintruX plans to revolutionize the lending scene by being the first online marketplace for the borrowers, lenders, and guarantors with added features compared to current ones. Technology is very much fast paced. I never imagined banks to lose its dominance in lending but it’s the first time a project can actually challenge banks on its throne.
Why should we love FintruX?
1. Brand name on a business standpoint
One of the most important things to consider in business is the brand. If the logo is the face, the brand is the name and it should be visible to all kinds of advertisements. I personally have some businesses and I know how tedious it is to plan for the brand name. After this, it should be registered to your country and municipality. After business registrations, your brand name should be registered in the intellectual property agency to protect you and your brand name to competitors who also want to use it.
The two best things I learned about brand name are it should be catchy and easy to remember. A brand name should be at max of 3 syllables. Better if it only has two syllables but the best ones only have one syllable. FintruX is a two syllable word so I’m very sure many people will be familiar with it in the future.
2. Blockchain technology and decentralization
Traditional database systems use centralized methods for processing and storage functions. Blockchain technology is the future as it aims to make everyone in the blockchain interconnected. Since FintruX is built on top of a blockchain technology, it aims to be the first lending marketplace platform where the borrowers, lenders, and guarantors will all benefit. Since blockchain is about the community, the future of FintruX lies on the community, not just in a single entity.
3. Benefits of the users
In FintruX, there are three main kinds of users: borrowers, lenders, and guarantors. Borrowers will put their data in the online platform. The platform will then give all available lending options to the borrowers based from their parameters. Borrowers can choose freely from all options such as lower interest rates, better payment terms, and other options created by the lenders before they can agree to a smart contract.
The four cascading levels of credit enhancement will secure the lenders by having over-collateralization, third-party guarantors, cross-collateralization as insurance, and the FintruX Ultimate Protections Service. These four will surely give confidence to the lenders for their loans to the borrowers. The lender can also give rewards or penalties in the form of FintruX Tokens depending on the scenario of the borrower if they pay earlier or later from the agreed payment date. Compared to other current lending platforms on blockchain like Salt and Ethlend, only FintruX has this kind of security for the lenders.
The guarantors will also benefit from the ecosystem because they can earn FintruX Tokens if they commit to their agreement with the lenders when the worst case scenario hits and the borrower can’t pay anymore the lender.
4. FintruX Tokens (FTXs)
FTXs will be used by the borrowers to apply for a loan. FTXs will be used by the lenders for creating loan packages with different options. FTXs can be used to pay loans. FTXs can be used as a reward or punish tool by the lenders for the early or delayed payment of the borrowers. FintruX will continuously earn from the platform because FTXs will be used for all the transactions in their online lending marketplace and they can still sell those FTXs to the users in the future.
5. Max supply
For a token to have a sure say of price increase, the token should only have a maximum supply distributed to its crowd sale and in the future. Billions to tens of billions will be a good bet but if it’s just around hundreds or even tens of millions, it will be much better.
FintruX has a maximum supply of 100,000,000 (100 million) FTXs. Bitcoin, the most used cryptocurrency in the market today, only has 21,000,000 (21 million) supply. Other Initial Coin Offerings (ICOs) nowadays tend to have tens or hundreds of billions of supply so I’m very much sure they will have a hard time to have increase in price. On the other hand, FTXs are only in the hundred millions so I’m very much sure for price increase in the future.
6. Usable application
FintruX already has their working demo for their online lending marketplace platform. Most ICOs nowadays would just launch their product or application after raising funds but a sign of a legit ICO is a working prototype or demo of a product or application that can be tested by early adopting users.
Initial Coin Offering (ICO)
Currently, FintruX is holding the ICO of the future of lending for the price of 1,518 FTX per Ethereum. That converts to $0.56 per FTX ($851.99 per Ethereum) plus 1.2% bonus. As a matter of fact, they’ve already sold $17.8 million worth of FTX as of this writing, nearing its $25 million hard cap for the crowd sale.
In 2009, Bitcoin started around $0.10 per coin and based from the data of Coin Market Cap, it surpassed the $20,000 in December 2017. No one knows what the price per FTX will be in the future but there are 7.5 Billion people in the world and is continuing to grow by the year and I know everyone needs money in one way or another. Just think about the future of FintruX if it gets mass adoption.
Disclaimer: This is not an investment advice. Invest at your own risk and invest only the amount you can afford to lose.
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News source:
Website: https://www.fintrux.com/
Whitepaper: https://www.fintrux.com/home/doc/whitepaper.pdf
Facebook: https://www.facebook.com/FintruX/
Twitter: https://twitter.com/FintruX
Telegram: https://t.me/FintruX