Investing in promising blockchain startups is now possible without selling your own cryptoassets. CoinLoan lending platform, announces a 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. Unlike ICO, that assumes listing of the token post factum, IEO engages exchange as a major partner and a platform for token sale. 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 the participants to borrow fiat funds instead of spending their own crypto assets. This creates a win-win situation for the investor: allows to earn more and creates a safety bag in 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. Selling it, you can buy 407 500 PTI. Or borrow 1200 USD against this crypto to buy 244,500 PTI. The second option doesn’t look convincing, but let us rather calculate”, — suggests Faliushin.
“In an optimistic scenario, when in one year both BTC and PTI doubled in price you still have 0,5 BTC worth 4,000 USD now and 244,500 PTI estimated at 2400 USD. It’s 6400 USD altogether, minus 1320 USD you’re to repay for a loan (see calculations above). Net profit is 5080 USD while selling your BTC you’ll gain 4,000 USD only”, — adds Faliushin.
It’s also beneficial to use crypto-backed loans to protect yourself in case of risky investments. What if something went wrong and instead of being double, the value of your tokens is reduced by half? As you can see in the picture above, CoinLoan is your chance to get out of the situation without losses. After all, your BTC asset remains untouched.
And the last thing, Payomat IEO starts on April 1 and will last for three days only. So it’s time to use the opportunity and try a leverage use case. Sign up to the CoinLoan platform now and invest in tokens without selling your cryptoassets.