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7 hours ago, cmbartley said:

They paid my interest interest in full and twice my principal. They accidentally sent me double my deposit. That's effectively a 210% interest rate for 6 months. I've DM'ed them and contacted support to return the excess but... no response. Bang up job they're doing over there.

Yeah out of all the bits of your situation that one is the biggest red flag so far. Let us know the resolution when/if there is one.

 

Cheers.

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What do you guys see as the price potential for LBA given the current use case and any potential upcoming use cases? What other use cases are in the pipeline that could drive value? Seems to me like the primary use case is earning a higher % interest by simply holding a specific number of LBA. This is comparable to staking in that it actually lowers the supply available for purchase, which could lead to price appreciation if a large wave of buying demand comes in. However, what are the chances of this happening and is there any other demand for buying LBA aside from earning a higher interest %? Just trying to better understand the value proposition of LBA and what could potentially impact it's price.

@Mitty @cmbartley @Zedy44 @zerpdigger

Edited by Mpolnet

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8 hours ago, Mpolnet said:

What do you guys see as the price potential for LBA given the current use case and any potential upcoming use cases? What other use cases are in the pipeline that could drive value? Seems to me like the primary use case is earning a higher % interest by simply holding a specific number of LBA. This is comparable to staking in that it actually lowers the supply available for purchase, which could lead to price appreciation if a large wave of buying demand comes in. However, what are the chances of this happening and is there any other demand for buying LBA aside from earning a higher interest %? Just trying to better understand the value proposition of LBA and what could potentially impact it's price.

In the US taking out a loan does not incur a taxable event from an income tax perspective.  I have a strong feeling many of the legitimate digital asset lender/loan services will get significant business during and after the next bull run when people realize they can leverage the value of their assets without actually having to sell them the day they need the funds by collateralizing them into a USD loan for short term usage.  For people who want to entertain less risk, but still leverage their assets without selling them they'll turn to these kinds of services for passive income.  Some countries tax laws will fair better than others for this kind of tactic.  The demand for loans will drive up interest paid to lenders to entice more lending.  This means more people flocking to buy their 10K LBA stake to secure the higher interest rate, which in turn should bring scarcity and ever increasing demand for newcomers to secure their 10K lockup of LBA.

Will it really happen?  Not sure.  Personally, I'm not looking to expand my LBA position beyond what I already hold - enough to stake and play around a bit if I want.  If LBA builds out partnerships and finds its way into some popularity I think it has potential to take off, but I'm really more interested in finding a passive earning tool as a lender of USD rather than crypto.  Big issues coming will be around...

  1. Legitimacy.  @cmbartley experience canceling his mistaken auto-loan and getting 2x refunded doesn't look great.
  2. Regulatory pressure.  There are strict rules around loan companies which take an asset from a lender and then turn around and re-lend it for another asset and so far digital assets aren't on the radar for this yet.  Does this happen with Cred?  No idea.  They claim they never lend for short selling, but that's about it and as far as I can tell there is no contractual language in place to guarantee even this much.
  3. Taxation.  The taxes related to interest payments to borrowers.  If you hold LBA you get a higher interest payout, right?  Well does that mean the block of 10k LBA technically generates a dividend payout as the difference between the interest you get as a lender without staking the 10k LBA?  The value isn't fixed between assets -- USD + 10k LBA = 7% higher payout vs. BTC + 10k LBA = 4% higher payout -- but could tax laws still interpret that as a dividend in addition to the percentage generated as income tax?

I feel the whole lender/borrow crypto services are as risky if not more risky than investing in straight digital assets, but it's a business model and it has demand so someone is going to be successful long term.  And keep in mind I think we are still really quite early to digital assets.  We are just starting to see the potential of tokenizing pretty much anything.  If the governance around tokenized assets makes them easier to handle than their non-tokenized variation you'll be seeing a lot more "things" transitioning to a token and as such will become lendable / borrowable in much easier ways than the world has previously been privy to, which could draw in even more demand for these kinds of services...

Edited by Zedy44
poor grammar

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They emailed me and kindly requested that I send the excess to billing@cred.io via Uphold. The person who emailed was "Heidi from Cred + Uphold". 

These are the supposed use cases for LBA (https://www.mycred.io/token) but as far as know most of them aren't active. I'm not sure how this doesn't qualify as a security... I really don't know what the drivers of price are other than staking LBA for better loan/interest rates and it's not clear to me what their growth plan is. To me the whole Cred ecosystem is just very opaque and there's enough risk in crypto as it is. They'd do well to just an AMA or put out a clear graphic on how their system works. What ever happened to the Universal Protocol? Remember UPUSD? Seems like nothing is happening from what I can tell, Uphold only has 10K in reserves https://uphold.com/en/transparency

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On 9/17/2019 at 1:46 AM, Mpolnet said:

What do you guys see as the price potential for LBA given the current use case and any potential upcoming use cases? What other use cases are in the pipeline that could drive value? Seems to me like the primary use case is earning a higher % interest by simply holding a specific number of LBA. This is comparable to staking in that it actually lowers the supply available for purchase, which could lead to price appreciation if a large wave of buying demand comes in. However, what are the chances of this happening and is there any other demand for buying LBA aside from earning a higher interest %? Just trying to better understand the value proposition of LBA and what could potentially impact it's price.

@Mitty @cmbartley @Zedy44 @zerpdigger

Hi Mpolnet,

 

The 3 main drivers for price potential currently the way i see it are:

1) Staking the 10k lba for better rates with both Loaning and Borrowing as you have discussed.

2) Speculation in general. When the market moves its likely that small market cap coins with use cases are bought up with the hope of bigger returns by speculators

3) Buying LBA to lend and earn interest off. Currently LBA shares the top interest rate on Cred earn. I imagine that as Cred gains a bigger target audience and more people are lending via Cred Earn and people start getting returns and having positive results from the programs people will start to move some of their funds into LBA to get a better rate of return vs other crypto currencies they hold. I personally was all in XRP but i like cred and have always thought i should diversify a little so have directed some funds into LBA instead of XRP for the purpose of diversifying and earning passive income at the highest rate possible .

 

One other potential use case would be the possibility to lend 10k LBA to others that don't have 10k LBA and who do not wish to purchase LBA but would like the increased rate of return. For example. Bob has 10 BTC. Bob trusts cred and would like to lend all of his BTC for the next 12 months as he will be holding strong and may as well earn some passive income. Bob is not interested in LBA but would like the increased rate that it would give him if he staked 10,000 LBA (10% vs 6%.). As long as the cost to borrow 10k LBA for 6 months is less than the amount he would earn off the extra 4% it would be in his interest. This could easily be done as part of the cred earn contracts via Cred. There could be a market place where you could lend 10k LBA to cred on behalf of someone else so they can stake them. You could be paid in a one off lump sum or a percentage of the extra interest (say 50:50) or there could even be a pool which you could loan excess LBA to for others to borrow for increased rates with fluctuating rates based on who/how much value is requesting borrowing LBA. This could all be facilitated via smart contracts much like the current way the lending works. This could work for bob, the LBA lender and Cred as the more LBA staked the less in circulation and the more price pressure there is.

 

One other use case that was brought to my attention the other day which was new to me was the following "The transaction involved Ohana accepting Bitcoin Cash by using Cred’s LBA token as a translation utility, with sales and city tax proceeds settled in Universal Dollar. "

https://cointelegraph.com/news/us-politician-uses-crypto-to-buy-cannabis-for-tax-remittance-demo

https://www.youtube.com/watch?time_continue=327&v=_JacRhaFUBM

Now i'm not sure why there is a need for the "translation utility of LBA" why cant you just go from BCH to Stable coin? But hey if Cred is embedding itself as a value transfer token to assist in some function, say tax collection for example, then great. That could be big and who ever gets their hands on these transactions first will potentially do well out of it even tho it could be any fast coin acting in this way or just a system with out an additional token. Will be interesting watch this space.

 

current price:$0.01512

current CS:581,607,302

 

:how do i link to someones profile @Mpolnet etc?

Edited by Mitty

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Like the rest of the market LBA has been doing poorly for the last few weeks. Currently sitting on just over 1c. My first LBA lending payout got paid out on the 1st of Oct and i opted for being paid in LBA so that turned out quite nicely with my stack increasing by about ~9% instead of 2.5% due to the decrease in the LBA price. Although the value of the stack is still way down on what it was when lent at ~4c. I still have 3 months to go earning interest at a 4c value so if i goes up great, if i get another 9% increase in my stack great. 

Cred has now added another 15 coins to its lending with all the new to uphold coins being added. Hopefully this brings in new lenders who will buy 10k LBA to get the premium rates. Not much action yet tho. https://twitter.com/ihaveCred/status/1179467067025588225

BTC lending was increased to 12%(bonus 2%) which is great for all those BTC holders out there although has now finished as it was only available for a few days pre October.  

Cred put out an article regarding state licencing in the USA and its challenges.

https://medium.com/@ihaveCred/state-licensing-a-message-from-creds-general-counsel-82b6a5fedb93

There has been a lack of weekly videos so not sure whats happened with them. Didn't last long.

Overall things still seem to be moving in the background and with its current market cap of 6.5m USD im still happy trickling a few penny's in but with XRPs price being down to close to multi year lows i have reverted to topping up my XRP balance with the majority of my spare funds.

trading on the binance Dex has dropped right off with only 500k LBA traded in September. 

 

current price:$0.011

current CS: 583,040,177

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Another mention of the weed industry integration that i posted about a while back.

https://twitter.com/ihaveCred/status/1184940102834937859

https://www.eventbrite.com/e/taking-crypto-to-a-new-high-tickets-76095721351

Of note are some of the comments to the tweet.

"We are launching a revolutionary Merchant Solution for crypto and debit card payments, cannabis is the first use case but there are other merchants who will use our services."

"Cannabis is divisive for sure, but its a purely cash-intensive business and we are solving for a need. We try to take an agnostic approach, definitely not pushing drug use."

 

Will be good to get some more information about what they are trying to achieve and why. "launching a revolutionary Merchant Solution" sounds like the other 100s of coins attempting the same thing. Hopefully creds position in the market, relationships and team can get some momentum.

 

current price:$0.0104

current CS: 603,080,177

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Take a look at the CMC graph for LBA over the last 1d/7d.

https://coinmarketcap.com/currencies/libra-credit/

Volume is large and price is stable at 2.1c for the last 24hrs. (24mil volume for a 12mil MC)

Bug? wash trading? luck? seems strange. I assume its nothing to do with their CMS???

 

https://mycred.io/blog/cred-merchant-solutions-goes-live/

"On Wednesday, October 30, Cred and the Universal Protocol Alliance held a private event in Emeryville, California, to unveil Cred Merchant Solutions"

https://www.youtube.com/watch?v=Lft8DmN8xsE

 

 

current price:$0.0214

current CS: 603,080,177

 

Edited by Mitty

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Anyone able to comment on the on going strange volume on CMC?

There was a sharp drop off midnight of the night of the second which continued until 9.30am on the third where it jumped back to 20mil volume but no movement in price. 

Very strange has to be a CMC or Feed bug. Or wash trading. 

 

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Interesting. 

If it is wash trading, could that signify market makers entering the space and creating LBA liquidity to benefit increasing LBA use from the merchant solution?

The timing of the volume seems programmed.

Really nice to see Cred coming out of the doldrums and hyping a new use case that has some political support in the California economy.  There was a point for a few weeks that the updates dropped off and the price was just drifting downward.  New additional use case.  New marketing leadership.  Continued focus on regulatory compliance.  Part of an alliance that is expanding with high quality partners.  Somehow, Cred remains very under the radar.  

Excited to see where LBA is going.  I am very keen on the institutional use case but am pleasantly surprised by the retail use case roll out.

current price: $0.0236

current CS: 603,080,177

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Another article regarding CMS. Nothing really new in it but good to see more awareness.

https://news.bitcoin.com/cred-merchant-solutions-to-help-unbanked-business-sectors/

 

Cred is the 7th largest crypto custody holding on uphold which is pretty impressive for such a low market cap coin.

https://uphold.com/en/transparency

 

Cred breached the top 200 again recently. Volume is still cranking away at 25m in the last 24hrs . Still unsure as to why the volume is so high with little price movement.

 

image.png.7d3b3f9de2aafbbcb39e5b78407a16a3.png

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