Crypto.com has announced the launch of “Crypto Earn and Crypto Credit” system. This scheme point blank is targeting to replace the regular bank account dealings, dependency, system, and maybe it is an overall enhancement over the traditional banking system.
The company made this announcement on Twitter yesterday and revealed a lucrative point to attract more users to join its army. The company has declared that there is a chance to earn up to 8 percent on crypto for the users who opt for this scheme. Further, there is a scheme to get immediate and quick bitcoin loans, post depositing cryptos. The news took many by surprise, and almost hundred re-tweets can gauge the excited reaction to the announcement, two hundred ninety-one hearts, and comments that are still rolling which have reached thirty-five in number at the press time.
https://t.co/vCNztABJoG launches Crypto Earn and Crypto Credit to replace your bank account. Earn up to 8% on your crypto. Deposit crypto and get an instant loan. Find out more – https://t.co/OpadmNDGSD @cryptocom #ForgetTheBanks #Cryptocurrency pic.twitter.com/dktUNlzvEi
— Crypto.com (@cryptocom) May 16, 2019
As per the company, these services aim to offer its users a sense of more freedom for administering their finances on the company’s platform in the form of “Crypto.com Wallet & Card App.” The two key products launched by the company are- “Crypto Earn” and “Crypto Credit.”
Walking through the Crypto Credit scheme-
The company has offered the users a good chance to earn up to 8 percent interest per annum through this scheme. It sounds like a stable way to increase cryptocurrency based assets, as well as it offers the users more freedom.
How to avail the interest-
The interest can be earned on a daily basis, which will be paid together on a monthly basis. All the user need to do is to deposit into crypto Earn through the application. The user is given a choice on the type of crypto he or she prefers. It can be Bitcoin (BTC), PAX, or TUSD. There is a special mention about using MCO Tokens stakes “for earning better annual interest rate (ARP),” as per the company’s blog. With MCOO tokens stakes, the users can enjoy a lower annual interest rate of 8 percent, whereas otherwise, it would be 12 percent.
Terms for holding funds-
As per the official blog of the company, as of now, there are two fixed holding variables. They are- one-month term and a three-month term. Further, the company is currently looking into offering the users a flexible term in the near future.
Freedom to the user-
Since the user can monetize the cryptos, this relieves the user from selling it; thus, it gives more freedom to them. There is also an option for getting an instant loan by depositing cryptos. Further, the blog says-
Users can subsequently use the funds to spend it with MCO Visa Card, buy more cryptocurrencies in the Crypto.com wallet, or simply withdraw the funds. With Crypto Credit, users decide their own repayment terms within a 12-month period. There is no fixed repayment schedule, no monthly late fees or deadlines, and users have the flexibility to repay any amount, at any time, in the 12 months upon the start of their credit term.
The “loan to value ratio”-
The company offers 40 percent LVT for Bitcoin. The users can avail loans from the platform for which the calculations will be based on the current market price of the collateral and TUSD/PAX.
Except for “citizens or residents of Hong Kong SAR, Singapore, Switzerland, Malta, or the United States of America,” the schemes are available to all the platform users.