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Moneytoken – New Lending Platform ICO

Overview of Moneytoken

Moneytoken is a new lending platform based on the Ethereum network that aims to give lending opportunities to people who have cryptocurrency but aren’t able to use it as collateral traditionally needed by banks. Moneytoken operates on three basic ideas.They are their governance token, their stable coin and their AI.

Governance Token

Their token, IMT, is their governance coin. This allows owners of the coin to make decisions for this platform, to become a lender, and to get a 60% discount on the platform fees.If you own this coin you will have a say in what happens in the platform you are invested.

This is to give the people actually using the service have power instead of a bunch of rich business people.You will also be more eligible to become a lender on Moneytoken.

The final use of this coin to spend it to get up to a 60% discount on the platform and trading fees. In a way, it is like the Binance coin because it gives a discount to owners of it and helps loyalty to the platform. It costs 5 dollars for the presale; then it costs ten times more after that.


The second feature is their very own stablecoin, MTC. A stablecoin’s value always stays the same, and it can be directly turned into USD.

This is one of the currencies that they will be loaning out to customers along with Tether, DAI coin, USD and Bit USD.Tether is a coin that directly be turned into US dollars.DAI coin is on that could have a whole other article on how they mathematically make sure it’s always worth one dollar.

These are the leading stable coins and are accepted by a lot of places on the internet so they can actually be used to do what the customers want, like by that mining equipment you wanted or invest more.

Money token has chosen to lend out stablecoins because they retain their value; therefore, they are good to lend because the lenders knows the repayment value, which simplifies the payment schedule. This in turn ensures that lending will not cause a stop loss, which is discussed later in this article.

Artificial Intelligence

The third important aspect of this ICO helps to manage this entire operation. Amanda is an AI that will automate the loan operations and will act as a personalized financial assistant.

She will track everything that the customer does on their platform and will decide the services that would interest them and the loans that they would need.

She is powered by a deep learning algorithm similar to the ones used by Google to generate Google Images or to beat the grandmaster at games such as chess and go. Amanda makes the loaning process personal, effective, and automated.

What is the purpose of the ICO?

The whole point of this ICO is to help people who have two goals: they want to keep their investment potential and have liquid assets at the same time.

This allows people to continue to make investments without having to cash out an investment whenever they need cash. The target audience is miners who want to get more mining hardware and investors who want to still make money and pay the bills.

While this system sounds very appealing, there are many things that can go wrong in this system. Moneytoken has developed solutions for each of them.

Mitigating Risk

The first issue is that the value of the collateral could drop below the value of the loan. If you have collateral in BTC and the value of bitcoin drops, then your loan is not backed by anything.

In addition, Moneytoken has just lost their money because you have no incentive to give it back. This can be a very big problem for them, so Moneytoken has created fail safes.

Collateral Rate

First, they require that all loans must have at least a 1 to 2 loan to collateral rate. This means that for every 1 dollar of the loan you get you must put in 2 dollars as collateral. This offsets the risk that Moneytoken accepts by not have credit score requirements.

Selling Collateral

The second way Moneytoken minimizes their risk is by immediately selling off your collateral if the rate of loan money to collateral goes above 95 percent. While this lowers the risk for Moneytoken, it doesn’t remove the risk altogether.

The problem lies in the fact that they might not be able to sell off the collateral quickly enough. They’ve considered that as well. They have created a safety fund, a pool of money made from previous profits made on the platform. This way even if they do lose money then they will remain operational.

No Smart Contracts

Another risk with this platform is that due to the limited ability of smart contracts that Moneytoken can offer, they cannot use the smart contracts to run their deals.

Multi-Signature Addresses

Instead, they will be using multi-signature addresses. The signatures on the address will be one for the borrower, one for the lender and two for Moneytoken.

Control of Funds

This allows the lender and borrower to stop Moneytoken from having complete control of their funds, but it also allows Moneytoken to stop the borrower and lender from cheating the system.The fraud they are trying to avoid is if one person made a lender account and made a borrower account.

Fraud Protection

This would allow them to have complete control of the funds and could just steal from Moneytoken. This four signature system would give Moneytoken the power to not allow that fraudster and it would allow the lender and borrower to stop Moneytoken from taking their money if someone hack into Moneytoken.

The final problem is the same as in any loaning environment: People being unable to pay back the loan or people just not paying it back.

Security Deposit

Moneytoken mitigates their risk by collecting collateral at the start of the deal. If the borrower pays back the payment in time, then they get their security deposit back and everything is good.

The problem arises when they don’t pay it back. Then the platform must use their security deposit to pay back the loan, and it also takes out a chunk of the deposit for damages.


This platform really get interesting when you look at all of the options it has and its versatility. You can take out a loan of Tether, use BTC as collateral, and pay it back in litecoin. That is amazing and could probably not be done by any other banking platform.

Different Payments

This allows a miner who has ether but wants to mine litecoin to put in ether as a colateral ,get usd in exchange and get the mining equipment to mine the litecoin.

In normal loaning situations they would have no way to pay back the loan, which they must pay back in ether, because they now only have litecoin.

So Moneytoken solves this problem by accepting litecoin as repayment and all the time the miner has still been invested in ether.


This is a very interesting project that has started giving out loans and is continuing its presale as of right now. Moneytoken intends to open their exchange in 2019.This one has a lot of potential, and I am really looking forward to seeing how it affect the future. If you want more information on this, then go to