Inspeer is another blockchain product for peer to peer lending services. The project aims to be the panacea for crowdlending problems, as it aggregates users in this industry on one platform to access both ‘person to person’ and person to business lending options.
Their platform includes a credit score application, a KYC compliance policy and AML/CFT security checklist, fraud detection mechanisms, and profitable shareholdings through automated portfolio investment of lenders funds – that is, the investor can simply specify how much persons should the money be distributed amongst (limit of 50), and they can determine their own ROI in the process; once these parameters are set, the system finds and matches eligible borrowers and distributes the funds accordingly.
Access to financing for business startups and expanding projects are becoming more challenging due to the unwarranted global financial constraints, and individuals not being able to come through with agreements, the world of loan services have become strait.
The platform independent of blockchain infrastructure has achieved a reduction of high cost in final scoring mechanisms which prolong loan approval time and, the risks associated with loan defaults.
They will be switching to a blockchain system to promote their peer to peer loan facilities. This way, they hope to eliminate every form of intermediary thereby improving loan access time and efficiency. However, they would still set in place systems that provide necessary data to account for AML/CFT provisions and confidence level from reputable score values gotten from their algorithms.
Many ways to finance a project would include funds from friends and family members, banks and credit institutions. With each, comes a certain difficulty that tends to lead to several disappointments; With family and friends, the major disadvantage often time is when the sum required is not sufficient to see the project through to completion. In the case of banks, the bureaucratic hurdles are one thing and the other is that not everyone can afford to follow through with the demands and high-interest rates that accompany such loan facilities.
Credit institutions at a glance are out to make profits and make it hard for borrows to access the desired loans, sometimes they go as far as staking so much as collaterals and just to access so little in return for the money they borrowed.
However, while p2p channels of borrowing money may well be the last resort for those who are desperate, the conventional system has its own issues. The problems of loan defaults, trust issues, and collateral management are some of the outstanding challenges facing this system.
More so, an important advantage this particular kind of credit offers is the lack of financial institutions as intermediaries thereby reducing processing cost, fees, and commissions drastically, especially with operating cost reduced to the barest minimum through online facilities, the accessibility rate has been improved.
The money lending systems are gradually failing, especially as it no longer puts clients in favorable consideration. Either the borrower or the lender is always at a disadvantage and find it hard to entrust their loyalty or funds to the system.
The major problem identified by Inspeer is the bottleneck approach to accessing loan services set up by banking and financial institutions. It would seem that each time global economic crisis occurs, the more difficult it is to gain access to these funds.
The peer to peer lending platforms now instituted online have the advantage of servicing a niche that has either been neglected or disappointed by the conventional banking system. As a matter of fact, more people are beginning to turn to this channels to access funds to sponsor their projects, thereby increasing the pool of individuals who want to offer their money and those who will be willing to accept the finance to carry out their projects.
Various speculations about the market including a maximum output of up to $400 billion USD by 2020 has made it soar with sights on the prospects.
Another growing determinant factor is the current trend in fundraising which includes using financial technologies to create alternate financial pools to source funds for startups.
It is established that this service is well patronized due to interest opportunities because when compared with some other investment circles this system provides more return on investment for capital used as loans.
Current platforms running centralized peer to peer lending are not without their own shortcomings, most of them having a central depository are risked with embezzlement of funds, exposure to pyramid schemes or loss due to security hacking. Over the years, these problems have contributed to the sour taste in the industry. However, they still have more attractive features and tolerable lending criteria juxtapose to traditional financial institutions.
It would also seem that the crowdlending platforms are dominant in developed countries and are well advanced in their system of operation. However, some other regions have theirs undergoing slow progress. Inspeer’s project identifies these markets values and the problems limiting the effectiveness of peer to peer credit services in these regions – outstanding among others is the lack of a robust scoring system and it aims to cultivate an efficient model to maximize the market potential.
Other problems that have been identified include high loan interest rates and lack of regulations, of which the Inspeer team are dedicated to solving through their platform.
Although, there are current competitors in the decentralized lending market which Inspeer will have to compete with, such as Ethlend and Lendoit among others whose activities are centered around smart contracts thereby emphasis laid on trustless systems. However, the reason why I think Inspeer will stand out in the lending market is that of the unique credit score algorithmic system they are developing.
They would be conducting a public token sale event to distribute their tokenized digital assets to with the aim of raising a minimum of $2 million USD or a maximum sum of $30 million USD to execute the project. Their tokens supply is limited to 50 million INSP and each token is estimated to be worth $1 USD.
Once the platform is launched, it promises 20% net-profit to be distributed to its investors within the span of 6 months during operation.
The platform would be based on the Ethereum network and would depend on the Ethereum blockchain to carry out its decentralized operations.
They currently operate under the LightFin.ru brand, which is also a loan facility platform, on completion of the objectives of the token sale, they will switch to a more robust decentralized platform.
The token sale is divided into a pre-ICO and the main sale event. They decided to limit their objectives based on the outcome of the ICO. At each milestone achieved during the token sale, assuming that becomes the maximum amount to be raised they will adjust their budget to suit the following:
1. If only $2 Million USD mark is reached, they will simply introduce their test product to the Russia and Estonia markets, to include other services like payday loans, an issuance of virtual cards, and cryptocurrency lending as their main priority.
2. If only $6 Million USD mark is reached, they could go further to expand to other regions, thereby initiating the opening of P2P lending in both Spain and Latvia accompanied with the other aforementioned services also provided.
3. At their $12 Million USD mark, they plan to scale their model a bit more by establishing a branch in the United Kingdom, followed by a debt restructuring program for their clientele.
4. The hard cap of $30 Million will prompt them to provide loans for both small and medium scaled businesses across borders and a VC fund sourcing.
They have reserved only 85% of their total token supply for public sale, while the remaining tokens will be distributed thus:
The ICO also features bonus structures for different investors:
For those contributing between 11th December 2017 to 18th December 2017 will be awarded 15% bonuses on the token sale, those who fall between 18th December 2017 to 1st January 2018 10% token bonuses, furthermore, those who fall under the 1st January to 15th January category will receive a 5% bonus on the number of tokens purchased.
They also have a special bonus structure for those contributing higher amounts; for those buying tokens worth between $1,000 USD and $5,000 USD will receive extra 5% bonuses, and those buying beyond $5,000 USD will receive %10 bonuses.
The roadmap is descriptive enough for anyone to understand, and by stating their objectives in clear terms they have simplified the expectations of the clients and prospective investors. Also from the roadmap, it is well observed that the team wants to make the product as interactive as possible.
Their expansion plans are deterministic; however, they have no clear term of projection from shortfalls. Moreover, on the proposed scaling model in the UK, there are no specific indicators for investors to mark the achievement of such huge landmark.
The CEO and Founder, Denis Kabanets seem to be a visionary, however other than him being an entrepreneur stated in the documents, no other information is available. But on his professional profile on LinkedIn, it indicates that he was the Chief Finance Officer from October 2016 to August 2017, which doesn’t say much about an experience in the required field. However, it would seem his team structure is flourished with experts from different fields akin to the business nature.
They have a very simple and interactive website, the information on the website is straightforward. Hardly should an investor miss his way around the webpage.
Their whitepaper looks simple enough, although there are few typographical and grammatical errors found in it.
They have social media accounts, on telegram having 3,646 followers, Medium having 38 followers, Twitter with 1,731 followers, Facebook and Reddit.
The currently are accepting ETH, USD, and BTC as the contribution currencies for the token sale. They have an escrow and George Basiladze (Financial system, Co-founder Cryptopay Ltd) is in charge of the account.
In summary, with their InsCore, an AI-based scoring algorithm which is equipped with machine learning capabilities plus their OLAF antifraud system, they are able to provide a peer to peer credit service to both cryptocurrency enthusiast and traditional fiat subscribers. Moreover, what they are offering will eventually benefit lenders and borrowers as it will provide flexible, affordable and attractive interest rates.Visit website