The current prices in the crypto market may not be a sign of huge changes, but behind the scenes, this industry is going through a new, evolutionary period. Particularly the sector of crypto lending, an industry that is still unknown to many HOD teachers. Co-founder and CEO of YouHodler, Ilya Volkov, discussed with us about this emerging ecosystem, its impact on traditional bank loans, and where to go in the future.
Crypto-based Loans VS. Traditional bank loans
Many competing crypto-lending platforms make the mistake of comparing themselves to traditional banks and even saying that they are replacing them. That may be a great headline, but in reality it is not possible and not really helpful to society. YouHodler does not plan to compete with traditional banks. Instead, the goal is to improve certain areas of the industry that traditional banks may not be able to cover.
YouHodler aims to make the lending process faster, more sustainable, more user-friendly and beneficial for people looking for a loan. The future of this new community that we all belong to is not so much about upheaval and substitution, but about working together to improve our current solutions.
The role of Youhodler in the Cryptosphere
You can think of this platform as an intersection of banking, stock market and payouts. A “FinTech ecosystem”, if you like. The crypto bubble 2017-2018 was great for a select few, but for the entire crypto industry this was not a really positive event. Now that it’s over, Crypto can focus on finding its true value for society, which can be explained in two dimensions:
1) Krypto is a new asset class (tokenization of assets, security tokens, utility tokens, SEC rules, new projects, etc.)
2) It is a means of payment. A new protocol for quick and easy money transfer all over the world.
To support these two dimensions, we have developed a crypto-based credit solution. At YouHodler, users provide their cryptos as collateral for a Fiat loan. It helps you to get cash without having to sell your crypto assets. Regarding possible collateral we offer BTC, BCH, BSV, ETH, LTC and XRP. These are more options than our competitors offer and we plan to add more each month. In addition, we plan to support stable credit (eg USDT) on loan repayments and disbursements.
In the near future, we will grow beyond our identity as a normal crypto-credit platform and introduce a new app with credit card integration. Customers can use these just like a regular credit card, but with some additional features, such as: the use of cryptographic security to manage your credit limits and the implementation of free collateral for the YouHodler credit card.
Crypto Loans and the Future of Global Loans
The mention of all these details in the previous paragraph happened with a view to the future. The traditional banking business will not disappear, as will the loans granted by these banks. However, not everyone has access to traditional banks. Most developing countries are far behind in this area, but YouHodler, along with blockchain technology, can solve this problem. By offering Fiat loans to people with limited access to banking services, we open up new opportunities for them. Now they have the capital to participate in the global economy in a new way.
In addition, crypto loans create a benefit for coins. Maybe your BSV is worth nothing now, but you can now get a Fiat loan for the BSV. Later, when they regain value and rise in price, you will be happy not to have sold them. They would not have received credit from a traditional bank, as they are not dealing with crypto assets. Despite all this, we do not want to replace the Goldman Sachs of the world. However, we hope to create a service that will benefit a global audience in addition to what is currently available.
By working with established lending methods, YouHodler hopes to unlock the value of cryptos, accelerate transactions, improve ID verification, and make the overall process more accessible to a global audience.