- Anonymous Founders
- High Borrowing Rate
In our BitcoLoan Review, We looked at the Pro’s and Cons of the business and help you make your own decisions.
Bitcoloan; Owners and Operators
Bitcoloan is registered in the United Kingdom via company house, it was registered on the 9th of December, 2020., as a private limited liability company with nature of business of Activities of investment trusts. You can verify that here.
It has one director listed publicly as Lester Mark, and it is not known if this is entirely true, or a case of stolen identity. This doubt is raised because registration via company house can be done online, and with the right documents, it is possible to sail through easily.
Further search from the financial conduct authority revealed that BitcoLoan is not licensed by them, inquiring from the live chat option available via the BitcoLoan website, they made it clear that privacy was essential to the directors and owners of BitcoLoan.
We find this a bit odd, while crypto is privacy focused, operating a business in the crypto space doesn’t require you to hide unless you believe you are doing something illegal.
Satoshi had every reason to hide, but we know the founders of Binance, same with Coinbase and Kraken. This cast a lot of doubt about BitcoLoan.
In our BitcoLoan review, we have seen a lot of red flags, and have highlighted them above, if these bothers you, BitcoLoan might not be the platform for you.
BitcoLoan Review; The Core Business
The Core business of bitcoloan is a marketplace for buyers and lenders, in addition to this, they have their own token, which they are selling on their platform.
At the moment, the BITCOLOAN Tokens is an internal token of the company. Soon, the token will be available for sending to any ERC20 wallet and then will get out on an exchange.
However, the token is not available for trading yet; the token can be obtained by completing one-time and daily tasks, or by investing in a loan.
It is not yet known if this is a real promise or just another fake website trying to scam people of their money.
Tokens can be obtained in two different ways. The first one is to perform one-time and daily tasks. The second way is to invest in loans and get 10 BITCOLOAN Tokens for each $1 invested.
You can take a look at the tasks in your Dashboard Token section. Each task has a complete guide that you can read when clicking on the task icon. Some tasks can be performed only once, while some others can be performed several times or on a daily basis. You can find the daily task list in the Dashboard Home tab.
It doesn’t matter what kind of a loan you invest in; you still get 100 tokens for each $1 invested.
BitcoLoan Review; The Process
Bitco Loan promises returns as much as 1.4% a day, but this return is supposedly coming from the loans you are giving out to others on the platform.
In essence, there is a borrowing option and a lending option on the platform. You make money when you lend to someone on the platform.
However, to borrow, you would need to deposit the equivalent of the amount you are borrowing into the platform.
The Idea I believe is mirroring Nexo but not in its entirety.
Unfortunately, the rates at which you borrow on Bitco Loan is extremely high, and that is because in order to pay someone 1.4% profits a day, that money must come from someone.
Given that you need to deposit the equivalent money you want to borrow in crypto before you are loaned, I believe it might be difficult for this company to run down, except perhaps the high rates of borrowing would mean no one borrowing from them, but you never know.
This also does not exclude the potential that the anonymous founders of BitcoLoan could disappear one day.
At the point of writing this, I have no reason to believe this website is a scam, It is therefore classified as legit,(other legitimate investment platforms) albeit, invest wisely, and ensure to consult with your financial advisor before you make any investment decision.
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