Share this article
An editor at Coincrop
19 Aug 2022 | 22 min read
assive income through cryptos as collaterals has gained momentum these days. But enthusiasts often find it difficult to reach the borrowers and lenders on a secure platform. That’s where CoinLoan comes forward to hold your assets without permanent selling.
The crypto lending company has special features to make the most of your cryptos. And it comes with a native ERC-20 token to make things easier for everyone. You can enjoy loads of Defi advantages by becoming a customer of the promising crypto setup.
This guide is a CoinLoan review.
Disclaimer: All of the information written on Coincrop is without influence and based on our analysis. No guarantee is offered concerning the accuracy of this information and therefore, any individual following up on it does as such completely at their own risk. Rates are correct at time of publication.
What is CoinLoan?
CoinLoan is a regulated Europe-based lending platform to facilitate crypto-backed loans. The full-fledged company can help your assets grow, swap, and borrow through crypto collaterals. It Peer to Peer (P2P) services can benefit both lenders and borrowers. In this guide, we evaluate the organization with a CoinLoan review.
Borrowers can leverage their digital assets in hand without selling in the market. And lenders can earn competitive interest rates with minimum risks for a passive income. You can issue a loan against your Bitcoin, altcoins, stablecoins, and fiat currencies.
Easy terms, excellent returns, high security, and continual regulations make CoinLoan a great space. It has slightly limited but standard products with a wide range of asset compatibility. Also, you can manage your assets through its friendly services.
What is the history of CoinLoan?
Alex Faliushin and Max Sapelov founded the crypto finance company in 2017. The platform is said to start its official journey on February 1, 2017. Alex is currently the founding CEO, whereas Max remains the founding CTO of CoinLoan.
However, the company was presented to the public for the 1st time in August 2017 on Bitcointalk Forum. But the platform went live in July 2018, nearly a year after its founding by getting the required licenses.
The team started introducing new products, services, and means of lending in December 2018. It all began with the integration of a crypto-exchange service. Many upgrades for these services are pending to cope with the client's demands.
CoinLoan currently resides in Estonia under Estonia Financial Authority. They chose the north European country for its crypto-friendly system. So, it’s a legal company registered with the regulating authority.
Also, the company goes by ExFinance OÜ instead of CoinLoan in the Estonian system. The financial software platform currently holds venture capital-backed financing status. Its full ownership remains privately held with Series A funding.
The platform operates in 160+ different countries across the world. You can get its services from the US, the UK, and other major trade centers. And the company supports almost every leading crypto asset.
Keep reading this guide to find out more in the CoinLoan review.
How does CoinLoan work?
CoinLoan delivers financial assets to people who need money from 3rd party investors. Investors will sign-up to open an interest account with the platform. They’re to stake supported fiat currencies or cryptocurrencies to earn interests.
CoinLoan uses the staked assets to provide crypto-backed loans to borrowers. The borrowers are to keep their financial holdings as collateral. This process will secure the issued loan against potential failure to pay the issued loans back.
Once a borrower pays the loans with interest, the authority releases the pledged collateral. The interest on the loans keeps the entire system running. However, the interest rates vary depending on the loan period, amount, and holdings.
What products does CoinLoan offer?
CoinLoan has many in its store for anyone looking for the best use of their digital assets. The platform offers all of its available services under 5 different products and this CoinLoan Review describes those products:
1. Earn – Enjoy high-interest rates on the supported assets from 3.0% to 12.3%. Fiat and stablecoins offer higher rates against altcoins' moderate rates. You’ll receive daily interest on the idle assets right after the deposit. There’s no hidden fee or chances of your assets being locked.
2. Borrow – Lend cash from the platform by locking your valuable crypto holdings. Your coin values should keep growing with time for recovery. There are different collateral amounts for specific assets, periods, and LTV. Also, there’s a margin call for your collateral management without a glitch.
3. Trade – Buying, selling, and swapping assets in a fraction of seconds are available. Enjoying top assets at the best exchange rate comes with the service. Secure fiat deposits with no direct or indirect fees are always positive. Keep looking into the portfolio will take you to the best opportunity.
4. Corporate – It features some individual products and services for large-scale uses. There are OTC Desk, Loans, and Savings comprised of different sections. You can go for 250 pairs and 1-on-1 service at the OTC Desk. There are 20 assets for making deposits against 15 assets for taking loans.
5. Token – Using CoinLoan Token can unlock commissions, staking bonuses, and exchanges in pairs. And there’s more to enjoy with the utility token. Its listings include some of the industry-leading platforms. The company has plans to launch an already-outlined Loyalty Program soon enough.
Anyone looking for multiple products may need to open more than one account. The process is simple enough, with two common steps – identity verification and making deposits.
What is CoinLoan token (CLT)?
CLT is the native utility asset designed for the CoinLoan platform services. The token based on the Ethereum blockchain is another ERC-20 asset. Hence, you can expect all the advantages of ETH tokens with CoinLoan Token.
The circulating supply of CLT is only 1.95M against the maximum supply of 22M tokens. And the utility asset grew nearly 10x in 2021 alone. It ranks #506 on CoinMarketCap by the $33,652,525 market cap with an ongoing $17.26 price.
Also, you can trade the tokens on different exchanges through pairs with BTC, ETH, and USDT. But the platform allows exchange in pairs with fiats, stablecoins, and altcoins. Its listings include HitBTC, HOTBIT, BITTREX, and UNISWAP.
Advantages of choosing CLT for the platform deduct 50% of the origination fee while borrowing. Higher annual interest rates come with a higher number of owned tokens. You can also keep CLT as collateral to take loans on easy terms.
Its Loyalty Program has 4 well-defined plans – Starter, Value, Advanced, and Performance. The last one offers maximum benefits to the client. However, each plan differs by staking shares, cashback, discounts, and free withdrawal limits.
Next in this CoinLoan review, we look at the available currencies.
Available currencies on CoinLoan
CoinLoan accepts almost all the major valuable assets in the industry. The supported crypto assets in the platform are as follows: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Solana (SOL), Polkadot (DOT), Ripple (XRP), Chainlink (LINK), Cardano (ADA), Monero (XMR), Stellar (XLM), Wrapped BTC (WBTC), Binance Coin (BNB) and Maker (MKR).
Meanwhile, it supports some of the leading stablecoins such as Tether (USDT), USD Coin (USDC), Binance USD (BUSD), TrueUSD (TUSD) and Pax Dollar (PAX).
However, you can deal with either of the following fiat currencies: Euro (EUR) and Pound Sterling (GBP).
The company uses its native CL token to make swaps for trading. Also, there are plans to enlist other popular crypto and fiat currencies soon.
Different CoinLoan Fees
You’re to deal with 4 different types of fees while using the platform –
• Deposit Fee – Crypto deposits are free of any charge. Depositing fiat currency is also free except using a VISA/Master Card. You must pay 2 EUR + 4.2% of the deposit amount there.
• Withdrawal Fee – Withdrawal in crypto or fiat currencies is free. No deduction is made to your amount whenever you go for a withdrawal.
• Liquidation Fee – This fee refers to the trading costs and expenses reimbursement. It measures 7% of the total liquidated loan collateral.
• Borrowing Fee – The borrowing fee in the platform is 1% of the amount. This gets converted to the CoinLoan Token (CLT) as per its value. Using CLT can get you a 50% commission.
What are the advantages of CoinLoan?
The following in this CoinLoan review look at the advantages:
• Native Utility Token
CoinLoan Token has been one of the top positives for the platform. Using the utility token means more benefits in cryptocurrency trading through the company. Additional features and financial advantages are available for anyone choosing CLT.
• Excellent Exchange Rates
Its algorithmic exchange boasts competitive rates to yield maximum profits. You won’t have to your time by hopping on and off different platforms. The platform picks all the top, reliable, and special rates from the leading crypto exchanges.
• Secure Fiat Deposit
Make your deposits in fiat currency without worrying about the security systems. It primarily uses SEPA and SWIFT to transfer your fiat amount to the digital world. Having a seamless deposit of investments is easy with trusted and verified channels.
• Tailored Capital Increase
You’ll have access to many assets to borrow, stake, or lock away as collateral. It comes with flexible fees, customizable limits, and in-depth financial expertise. Also, its bank-level protection, KYC checking, and AML control keep your capital secure.
• Anytime Loan Repayment
Paying your loans back at a faster rate can get rid of the additional interests for a year. However, you can take time to repay the principal with interest anytime. And you won’t have to deal with lock-ins, fines, or hidden fees for delayed repayments.
• Near-Instant Loan Approval
You can apply for crypto to fiat, fiat to crypto, and crypto to crypto loans. Automatic approval of your requested loan makes the process simple, fast, and effective. All you need is the collateral without paperwork or previous credit checks.
• Satisfying LTV Values
Loan-to-Value concerns space for your collateral to cope with price fluctuations. Lower LTV results in more space for the locked away assets. You can set the LTV value to 20%, 35%, 50%, and 70% while taking a loan related to time and assets.
• Exclusive Loyalty Program
4 different plans for the CLT Loyalty Program come with a wide range of features. Loan interest discount, free ERC-20 withdrawals, and cashback from exchange are available. Based on the chosen plan, you can enjoy 2.5% to over 10% staking share.
What are the problems with CoinLoan?
This CoinLoan review also looks at the problems with the provider:
1. Considerably limited track record for being a relatively new platform.
2. Lower compound interest rates for trading with currencies other than CLT.
3. USD is yet to become available; the closest options are the USD stablecoins.
4. A minimum deposit is required to earn higher yields from the interest rate.
5. High return rates are available for customers using and staking CL tokens.
6. Lower loan interest rates always require a borrower to set the LTV to 20%.
7. Market volatility and plunges can affect the loans, collaterals, and interest.
Also, you can check other similar platforms to avoid the CLT preference issue. Some platforms offer higher yields without involving any native utility token.
How safe is CoinLoan?
This CoinLoan review would not be complete without examining the safety. Its imperative of zero-incident safety seems legit from every angle. The company has managed to maintain a clean track record since its start. And the team aims to set the security standard bars higher.
The protected infrastructure provides an insured custodian wallet to every user. Also, there are 2-factor authentication, biometric authentication, and account takeover protection. Continuous vulnerability scans, cold storage, and a strict access recovery policy are available within the system.
You’ll receive security alerts whenever your assets become vulnerable by any means. Its bug bounty and CCSS compliance are ready to fix any issues. So, each asset in CoinLoan remains insured and secured.
How much can I earn from CoinLoan?
The following table lists products that pay interest on a flexible terms basis:
|Deposit assets||Reward assets||APY Rate|
Wrapped Bitcoin (WBTC)
Wrapped Bitcoin (WBTC)
Binance USD (BUSD)
Binance USD (BUSD)
USD Coin (USDC)
USD Coin (USDC)
CoinLoan Review Conclusion
You can take the CLT part as a positive or negative based on your perspectives. Also, the absence of USD as fiat can give some setbacks. But everything else looks good on the platform for a fair financial profit.
CoinLoan has already established itself as a reliable option with the plus. Its top-class security guarantees full protection of your data, a/c, or assets. So, you can consider putting the investments with no worries.
Hopefully, this CoinLoan review has been useful for helping you to decide if the organization is for you.