CoinLoan

CoinLoan is a crypto-lending platform, where anyone can issue and get a loan backed by crypto-collateral. The platform is a meeting point for borrowers who seek to leverage their crypto-assets without selling them and lenders who wish to earn competitive interest with minimal risks.

Company

CoinLoan company headquarters itself in Tallinn, Estonia, and for a good reason. Estonia is a European start-up and digitization paradise. This North-European country is one of the world's most crypto-friendly environments.
With the key members living in Tallinn, CoinLoan international team includes professionals from other countries in Northern and Central Europe.
CoinLoan has the status of a licensed financial institution and serves customers worldwide.

History

In 2014, an event occurred that later became an incentive for the company's creation. Alex Faliushin was forced to sell his bitcoins for about $400. There was no way at that moment, to save crypto-assets as a long-term investment and get the money for urgent needs. At the beginning of 2017, BTC tripled its price.

Faliushin and his business partner, Max Sapelov, came up with the idea of using crypto as loan collateral. They evaluated the market and development potential; there was no competition yet.

In the first half of 2017, Faliushin, as CEO, and Sapelov, as CTO, started to build a team and develop the crypto-to-fiat lending platform called CoinLoan. SALT lending popped up, implementing a similar business model (with an opportunity to borrow only) concomitantly with CoinLoan.

In July 2018, the CoinLoan platform went life . It was the bearish year for bitcoin and the whole crypto-market. It revealed a lack of services for crypto-enthusiasts trying to hold their assets. In response to a market request, many crypto-backed lending companies emerged.

CoinLoan continued to develop and improve the platform progressively:

• December 2018 — crypto-exchange service appeared. It CoinLoan users now able to convert crypto to fiat and vice versa directly on the platform.
• March 2019 — dynamic collateral monitoring system created. It allowed CoinLoan to lift the LTV limit to 70% and move a liquidation threshold beyond 90%.
• May 2019 — CoinLoan enabled Visa and MasterCard payments.
• June 2019 — To supplement existing crypto-to-fiat loans, crypto-to-crypto lending options added.
• November 2019 — interest account service added. It worked as a bank deposit and enabled users to earn fixed revenue for depositing crypto and fiat funds.

Main Functions

Interest Account

Offers a fixed rate on crypto and fiat assets for parking them on CoinLoan.

Lending Platform

Allows users to find an appropriate loan offer/request or create a custom one with a desired interest rate, loan term, and amount.

Crypto Exchange

Enables users to buy or sell crypto quickly.

Affiliate Program

Rewards users for bringing newcomers to the platform.

Fees Schedule

Borrowing

The borrowing fee is 1% of the overall loan principal amount. The CoinLoan platform provides two options for paying borrowing fee:

• In loan currency;
• In CoinLoan tokens (CLT) – 50% discount.

Lending

Lending is free.

Deposit

Deposits in crypto and fiat are free. Deposits by Visa / MasterCard: 2 EUR + 4.2% (from deposit amount).

Withdrawal

Withdrawals in cryptocurrency and euro are free. Withdrawal fees for other fiat currencies are fixed, as shown on the official site.

Liquidation

The borrower is charged a liquidation fee in the amount of 5% of the liquidated loan collateral.

Assets Security

CoinLoan focus on the development of their own security technologies. The company prefers to maintain cryptocurrency custody in-house rather than outsource security to a third party.

• All crypto-assets are stored in offline, cold, multi-signature wallets.
• Transaction signing only happens offline on separate devices that have never been connected to the network, and this process involves several people.
• The multi-signature process involves several keys (N) with a required quorum of any (M) keys. Thus, it’s not possible to sign the transaction using a single individual. Also, this system ensures that even losing one of the multi-signature keys, the user will never lose control over assets.
• Encrypted parts of the keys are stored in a geographically-distributed manner in the banks’ safe deposit boxes to prevent potential loss of the keys due to natural disasters, including floods, earthquakes, fires, etc.

External Links

CoinLoan website