Welcome to another video. Today wewill be talking about the problems with crypto giving locates. So if you are thinkingto earn interest on your bitcoin or simply give coin and accumulation crypto ascollateral this video is why you. My name is Jakub from P2P Empire and here on thischannel we review individual P2P lending areas and develop you about all of the aspects of P2Plending. If your goal is to become a more educated investor consider subscribing and thumped the likebutton to see more videos like this in the future. Due to the current crypto hype there are many brand-new emerging pulpits that tryto profit from the industry. Before we dive deeper into this topic, I want youto first understand the process of crypto lending.There are different investment productswithin the crypto lending industry, nonetheless, to keep it simple we can define cryptolending as an alternative investment from, where investors lend fiat money or cryptocurrenciesto other borrowers in exchange for interest. The crypto giving stage isthe facilitator of the event between potential investors and the borrower. It’sbasically a middle man that sets the standard rules. The process for the investoris quite straightforward. You situated funds to the crypto lendingplatform, choose one of the offered investment produces and invest in loansthat are secured by crypto collateral. The borrowers repay the principal amountwith their best interests back to your chronicle. The collateral offered by the borrower is alwaysat least twice as high-pitched as the loan amount.We ask this metric loan to value orthe better acronym for this is LTV. As you know, the value of digital assetslike cryptocurrencies is very volatile, which is why the P2P crypto platformsells the collateral as soon as it contacts a certain threshold( normally the LTV of 90% ). That nature your investment is always protected. Not bad uh? It roughly feels likeyou as an investor cant lose money. Well, wait for it, the best is yet to come. The crypto giving platforms oftenoffer interest between 5% and 10%. It apparently depends on the cryptocurrency you aredepositing as well as on the desired liquidity. If you want to be able to withdraw your moneyanytime, you will get a lower interest rate. But still, paying 5% to 10% interest while being able to withdraw your moneyanytime sounds like a dream right? Well, we have reviewed some of thecrypto lending stages in more details so lets have a look at whatthis fuzz is really about.The firstly crypto giving platform we’regonna be talking about is Coinloan. So, the first thing you mightnotice on the website is the limited offer – get 2% interest for 6 months. Scarcity and free money -thats a great way to seduce investors into investing more money.Its likewise a great auctions technique. Overall, the place looksquite legit. As you can see, Coinloan predicts safe assets as theycollaborate with an insured protector. Gives first check who is behind the platform. Solets navigate to the about us page to find out. So here it says, we are Coinloan.Upon scrolling down the page, the only info you get is thatthe platform is from Estonia. There is no information about thefounders or the team behind the platform. So we mine deeper only to find out that the CEOis Alex Faliushin and the CTO is Max Sapelov. Why is this not represented onthe platform, we dont know. As theres no performance of the team on Coinloan you should pay good attentionto the terms and conditions.So first of all Coinloan doesnt publiclydescribe how your funds are accumulated. Simply when moving your stores you will noticethat they are stored at Bilderings bank account. Bilderings is not a bank but an institutionwith an electronic money license. In the terms and conditions under section5. 19 you can read that CoinLoan shall not be liable for the inability to transferfunds due to force majeure circumstances, including unforeseeable and uncontrollablechanges in the field of electronic fees or Cryptoassets turnover, or relevantchanges in the applicable legislation. You can guess what this means.As the description is very broad, they could in theory deny yourwithdrawal with any conclude. Coinloan is also promoting an interestaccount which might create the impression that your money is protected by somekind of deposit protection scheme.Dont kid yourself. In the terms and conditions you can read that you are not coveredby any insurance against losses. Last-place but not least Coinloan can alsoamend the terms and conditions at its own discretion at any time priorto sending you a notice about it. Thats quite a red flag as this can reallyaffect your investments on this programme. We has not been able to attended any scaffold that isnt settled where the change in terms and conditionshad a positive effect on the investors. In fact, last year, we evendeposited some money on Coinloan to just see how it runs and it didnt. Coinloan offers you two commodities, the interestaccount and the option to create a loan offer. We initiated a lend give even aftertwo weeks our money was not invested. So we decided to cash out from the scaffold. While the programme boundary is quite developedand modern-looking, increased transparency of the pulpit heightens significant concernswhich you are able to keep in mind.Another stunning crypto giving programme is Nexo. Nexo is funded through Credissimo, a Bulgarian payday loan fellowship. The CEO and Co-founder of Nexo is Antoni Trenchevwho often shares his bitcoin prophecies on Bloomberg. The second co-founder of Nexo is KostaKantchev who is also the co-founder of Credissimo. Having the face of the CEO on theplatform is certainly a positive factor. If you want to look up statistical data, youwill be disappointed as theres nothing accessible. Last-place year we send an substantial questionnaireto Nexo with questions relevant to their business operations. Unfortunately theynever got back to us with the answers. If you scroll down to the footer of the page, youcan read that Nexo is licensed and governed. If you wonder by who, you have to do your independentresearch as this is not presented on the scaffold. We found out that Nexo has a financialinstitution license in Estonia, which is however not a giving permission. If you want to find out Nexos corporateaddress, you wont find it on Nexo’s website.Https :// support.nexo.io/ hc/ en-us/ clauses/ 3600082370 13 -What-is-Nexo-s-business-corporate-mailing-address- Dont you think it’s odd that a company whichapparently has more than 1M consumers and administers 4B USD doesnt even disclose thecorporate address on their website? Just comment your opinion in the comments below. Harmonizing to some external sources wefound divisions in Switzerland, Estonia and in the UK.There are several companiesconnected to Nexo, including Nexo Capital Inc. which is a company registered in the CaymanIslands from which the token auction was conducted. If you read the terms and conditionsyou wont find much info about how your funds are collected. Whendepositing money, you are transferring your funds to the InCore Bank in Switzerlandwhich is the custodian of your cryptocurrency. As you could expect, Nexo meets it also clearthat they are not liable for anything arising from working Nexo which basically meansthat they arent accountable for your loss. If you ever think of borrowing money on Nexo, you should certainly rethink the security ofyour collateral. It has happened in the past, that when a cryptocurrency plummeted thecollateral was liquidated in such matters of instants. This offsets borrowing fund withcrypto as collateral fairly useless. Tells move on to the third and last crypto lendingplatform which we will have a brief look at. MyConstant is similar to theearlier mentioned scaffolds. You can either invest in crypto-backed loansor deposit crypto in order to borrow money.When shop through the homepage, youwill see an excellent TrustPilot rating, which as you know, is not reallysomething you should mainly rely on. When you browse some of theproduct sheets on myconstant you will likely see manycomparisons to savings accounts. For the average investor it may seem likeConstant is providing a type of savings account. You should, however, speak thefooter where it clearly says that Constant isnt a bank nor aregulated international financial institutions. The comparison to savings accountsis therefore misleading at best. A positive comment goes certainlytowards their statistics page, which sounds much better than countless statisticspages of traditional p2p lending websites. Constant must have released the statisticspage sometime within the past few months, as the scaffold did not have any publiclyavailable data back in early 2020. If you want to find out whos behindthe programme, you will be disappointed as Constant does not share anyinformation about the founder or the CEO. Some external sources mentionthe figure Zon Chu. Unfortunately, we havent been able to procured his LinkedInprofile or even a drawing on Google. We contacted out to Constant and brought up thelack of opennes. Their answer was that they used to have a BIO page but apparentlyit sended the wrong send to the team that some people deserve more acceptance thanothers, which is why they made it down. I dont know about you, but having at least aportrait picture of the person who runs a P2P platform that claims to manageinvestments value more than 67 M USD is the least you can do tobuild trust with your gathering. But let me know in the comments below whatyou think. Do you believe that a crypto lending stage should at least introducethe founder or the CEO of the company? When it comes to the terms and conditionsof Constant, they can amend them at any time without prior notice. And ofcourse, by using the platform, you agree that you might lose all of your coin. So. Whats the takeaway from this video? Crypto-lending is due to the lack of transparency quite a risky segment withinthe P2P lending space. Those three mentioned platformsare just the tip of the iceberg. There are new crypto lending sitespopping up on a weekly basis. Crypto giving programmes typicallylack suitable supporting or at least we havent gotten proper answers to our questions. Dont get me wrong. The feeling of investinginto crypto-backed credits is brilliant, but because of the lack of transparency its quite arisky investment for most of the retail investors. At the end, you decide foryourself whats the best investment for you. The aim of this video is to raise some concernswhen it comes to crypto-lending platforms which of course are not being mentioned byall of the crypto giving promoters.If you want to make money with crypto.Trading it on a legitimate crypto exchange is much safer than transporting it to somerecently launched crypto lending platform in order to earn a bit of interest. There are a lot victimizes in the cryptoindustry and the risk of not being able to withdraw your fund isoften higher than you might see. But let me know your experiences withcrypto-lending platforms in the comments below. I am curious to hear your thoughts on this one. So that’s it from me today, thanks forwatching and see you in the next video ..