Lendingblock, a cross-blockchain, securities lending platform for cryptocurrency, announced on Friday the dates for the presale of its initial coin offering (ICO) of /LND tokens. Starting on March 9, the presale will allocate 450,000,000 /LND tokens (45 percent of the total supply) and will be capped at USD 7.5 million. The pre-sale closes on March 30.
Lendingblock also said, in a statement, that it closed a private sale in January, raising USD 500,000. It has scheduled its public sale to start March 23.
Positioning itself as an open exchange for borrowing and lending crypto-currencies and digital assets, Lendingblock allows borrowers and lenders to enter into fully collateralised crypto vs. crypto-lending agreements, across blockchains, according to the statement. Lenders can earn interest on their long term investment in digital assets, while borrowers can use theirs as collateral to enable borrowing to support shorter term trading, hedging and working capital needs.
“Essentially, Lendingblock is creating a parallel financial service for the crypto economy to securities lending in traditional capital markets, a market that has USD 2 trillion of assets on loan and [has] generated USD 4 billion of revenue in 2017,” said Steve Swain, co-founder and CEO of Lendingblock, in a statement. “We believe that the market for securities lending will be replicated in the blockchain asset economy, particularly in light of the continued growth in value of the crypto-asset market and the entry of institutions and funds.”
The /LND token will the sole medium for payment of interest by borrowers to lenders and the only currency for payment of Lendingblock platform fees, the company stated, in order to simplify the process and reduce the cost of exchange fees.
Total supply of the /LND token is permanently capped at 1,000,000,000 LND, with 60 percent distributed during the three phases of the token sale and 15 percent retained as a strategic growth and investment fund, Lendingblock stated. The founders and team will receive 20 percent of the tokens, subject to vesting over two years, and five percent will be distributed to advisors and supporters.
According to the published ICO materials, token compatibility is ERC20 and the only accepted currency is Ethereum. Lendingblock expects to launch in Q3 of this year, after securing regulatory approval.
image by Amtec, CC BY-SA 2.0
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