Libra Credit: credit anytime, anywhere. A further analysis

Libra Credit — Open Access to Credit Anywhere and Anytime

Libra Credit was co-founded by two ex-PayPal executives; Lu Hua and Dan Schatt. Straight away the pedigree of Libra Credit and the people responsible for it creation is obvious. Libra Credit is based on the Ethereum protocol; it uses its platform to avail credit in any part of the world at any time. Libra Credit avails coin-to-coin or coin-to-fiat providing options for their borrowers. Libra Credit is combing an established borrowing and lending network with a vast pool of entrepreneurs using blockchain as a spine to disrupt the traditional borrowing and lending market.

Market Performance 📈

Libra Credit recently finished their token sale of their LBA token, easily hitting their hardcap of $26 million. It has also been listed on various exchanges; actually being listed on four different exchanges on the same day showcasing promising performances over the days it has been listed. Upon listing the LBA Token experienced a sharp 175% increase in prices, reflective of the optimism surrounding the projects capability. The most notable listing of Libra Credits is the Huobi Pro exchange, which hosts a number of leading and upcoming crypto assets. Over the past 24hr, slightly over 2.5M LBA have been traded over the Huobi pro platform with LBA averaging approximately US$ 0.14 in value which translates to about US$ 350,000 worth of LBA traded. For more information on how to purchase LBA Tokens Huobi Pro exchange, you can follow this link to sign up and take part.

The Libra Credits Business Model ✏️

Libra Credit is running a business and profit is usually among the top priority for business. Without generating any revenue, Libra Credit cannot run its platform. Libra Credit has a well-developed business model which ensures that their platform creates some income every financial period. For any business to thrive, having the right partnerships is important. Partners usually have products or services that support your business.

Libra Credit’s business model includes an array of comprehensive strategies to maximize capacity for succesfful objectives in the near future. These include:

➡️Extensive network of partnerships. This strengthens Libra’s presence in the decentralized lending scene. Libra will want to form partnerships with both crypto markets and financial markets as they deal with both crypto and fiat. These partnerships form solutions to decentralized lending. Libra Credit is keen to be involved with crypto exchanges as it has already done, having its tokens listed on Huobi pro and other exchanges. Licensed financial institutions such as banks must also be on their priority partnership list, without support from such financial institutions, operations may prove extremely difficult. Lending involves trusting strangers that they will honor their debts and repay them by the agreed time period; however, anything is possible with man. Having a partnership with an identity verification data provider could help Libra Credit prevent any form of fraud in its platform. It may also support KYC and AML terms that regulators may have set.

➡️AI-based dual-credit risk assessment. As a business, avoiding bad debts is also a priority. The problem with traditional lending platforms is the rudimentary credit score methods they use to assess applicants without factoring in technological improvements and assets such as cryptocurrencies. Libra Credit uses an AI-based dual-credit risk assessment which takes into account the viability of the collateral submitted by the applicant and the credit score of the borrower.

➡️Multiple sources and use of funding. Libra Credit also employs the strategy of multiple sources of funds and different use of funding to meet the demands of a decentralized lending platform. Each borrower usually has their own unique needs that Libra would have to meet. They range from liquidity needs to hedging needs. Having multiple sources of funding creates different forms of funds within the Libra platform thus it becomes easier for Libra Credit to meet these diverse demands.

Key Benefits to Stakeholders makes Libra Credit an Easy Choice ➕

➡️Borrowers. Banks and other traditional lending institutions are harder to borrow from these days with their high interests and sometimes hidden charges as well which makes the borrower a slave to the lender. Libra Credit provides easy access to better borrowing services that are geared towards improving the status of the borrower. Furthermore, the borrower gets a 24-hour access to the borrowing platform which utilizes top-notch technology to fairly determine the borrower’s credit score and lending viability.

➡️Exchange partners. Exchanges that choose to partner with Libra Credit stand to gain from Libra Credit’s platform. First of all, due to the various sources of funding Libra is exposed to, liquidity may cease being a problem for these exchanges; Libra Credit can quickly solve this issue for them. Trade in the LBA token also will also increase trading volumes and income from trading fees for these exchanges. Libra is set up in a manner that almost everything it touches turns to some form of gold.

➡️Lenders. Libra Credit alleviates some of the annoyances in centralized lending platforms. Lenders had to spend a lot in monitoring their loans they had given out. A lot of paperwork was also involved. Libra Credit reduces the cost of monitoring loans while reducing reporting efforts through the use of blockchain technology as a single source of truth. Lenders also get to participate in the cryptocurrency and cryptoassets sphere with little risks involved.

What the Future Holds for Libra ❓

Recently, Libra Credit received over US$ 16 million from institutional investors to decentralize lending. Investors are seeing the economic potential of the Libra Credit platform and are really keen on making it work, thus installing their absolute confidence the Libra Credits project.

:chart_with_upwards_trend:Libra plans to soon release a desktop version of their decentralized lending platform. The mobile phone application comes soon after as Libra’s roadmap indicate a Q$4 release of the mobile application this year. Libra plans to be a global lending force to be reckoned with by 2020. Partnership growths are planned well into 2019 before the global lending space takeover in 2020.

Huobi Talk and Libra Credit Prize Pool 🍬

✅The latest episode of Huobi Talk, featuring Lu Hua, will be streamed via Huobi’s YouTube channel on 21st June 2018, 12pm — 1.30pm (GMT +8). To watch the video and participate in the prize pool, all viewers have to do Is proceed with the following steps:

➤Sign up to Huobi Pro.

➤Make sure to subscribe to Huobi Talk and watch the show with Lu Lua.

➤Answer 5 questions correctly during Huobi Talk.

For more on Libra Credit and the plans they have in disrupting the lending market together with future expansion plans, tune in for the Huobi weekly live stream using this link. Don’t forget you can participate in the trading of LBA on the Huobi Pro exchange.

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Libra Credit: credit anytime, anywhere. A further analysis was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.