P2P lending platform FinTruX Network has closed its ICO on $25m, following contributions totalling 22,000 ETH.
The hardcap for the FTX token sale was $25m, and was through the sale of 100 million cryptos.
Singapore-based FinTruX helps small businesses from around the world access financing from reputable institutional lenders and accredited investors at reasonable rates. The company helps startups that cannot access traditional financing options or have oppressive credit terms.
AI and machine learning algorithms are used by FinTruX to create scoring mechanisms to ensure safer lending. FinTruX automatically generates a contract in real-time whenever a loan is agreed.
The platform also implements four cascading levels of insurance to cover potential losses. It’s first stage is holding back 10 per cent of each loan as over-collateralisation and its second level inviting other users as a guarantor through a selection of risk and compensation packages. Its third coverage is a cross-collateralisation which pools the 10 per cent of loans into a combined pool which can then cover loans within the same class.
Level four of the cover is tapped from the FTX token reserve which can help cover any failures through a loan process, according to the company.
Proceeds from the sale will be used to develop the platform to enhance the loan experience, according to the company.
FintruX Network founder and CEO Nelson Lin said, “We are humbled to see that thousands of people from 100 different countries share our vision to serve the underserved and have helped us raise a total of about $25m that will enable us to make our global P2P lending ecosystem a reality.”
The company is looking to launch selective loans on its alpha release in Q2, and is looking for more lenders to take part in both the alpha and beta tests.
Earlier in the week, fellow blockchain-based P2P lending platform Celsius closed its own ICO, hitting its hardcap on $50m.
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