Dave Appleton: The HelloGold Lending product

lending hellogold gold finance asia

For some, getting a loan isn’t easy

It has been some time since I posted about HelloGold the product as opposed to all the cryptocurrency aspects. It would be easy to think that the cryptocurrency side of things is more important to us. Nothing could be further from the truth. HelloGold is in the midst of setting up operations in Bangkok. Our mainstream product development is ongoing and our customer base is increasing month on month.

We are also finalising the lending product with AEON Credit. AEON are a massive Japanese retail chain with about 100 million customers across Asia. As part of their operations, they established a credit department which later spun off as a separate credit service.

So why take a loan if you have savings in gold?

This may seem strange and counter intuitive when we are encouraging people to save with gold but I end up explaining it quite often.

As mentioned in a previous post, we encourage saving in Gold to counter the kind of currency volatility that ravaged the Asian region in the financial crisis of ’97. People in Malaysia saw the value of their savings drop to half of their former value; Indonesia and Thailand had it much harder.

Some time back we received a report from the Malaysian Central Bank that found that in an emergency, 75% of all Malaysians were unable to raise the equivalent of USD 250 or RM 1,000.

Unable to get bank loans, people turn to loan sharks or pawnbrokers.

If you are not familiar, loan sharks are illegal money lenders, often linked to gangs, who charge seriously exorbitant interest rates and resort to intimidation when people can’t pay up.

Pawnbrokers, despite the facade of regulation, are often little better. Having been asked to work on a system for a group of pawnbrokers back in 2003, I found out about the unethical methods that they often use to avoid such responsibilities like paying back the balance of the value of forfeited goods if the customer fails to redeem the item.

What we have designed is a system which is fair. The loan, being backed by gold collateral, is granted at very competitive rates. In the unfortunate event that a person fails to complete repayment of a loan, only the amount of gold required to pay off the remainder of the loan gets liquidated. The rest gets refunded.

So why would people take a loan against their gold rather than simply sell the gold? There are a number of reasons.

Discipline : When you cash in your gold to pay for a crisis, it can be hard to get started again. By taking a loan you agree to the structure of a fixed repayment schedule at the end of which you are left with your gold.

Gold is more than a saving : If you believe, as many do, that gold is likely to appreciate in value over time, taking a loan gives you something that could well be worth more when you have redeemed it than when you pledged it.

To find out more about HelloGold please visit the HelloGold web site.

The HelloGold Lending product was originally published in hellogold on Medium, where people are continuing the conversation by highlighting and responding to this story.

Original article was created by: Dave Appleton at medium.com

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency or ICO.

One more thing you may be interested in:

Interested in Cryptocurrencies and ICO's?

Follow our telegram channel for daily cryptomarket reports!

Join @cointrends

Stay on top of Altcoins and ICO trends.

Subscribe to our free Weekly Cryptomarket report

Delivered once a week, strongly to your inbox.

Subscribe to our mailing list
May 21, 2018

Scam scam scam scam

Message from Charlie Lee a.k.a. Satoshi Lite, founder of LiteCoinwith apologies to Monty Python.Almost a year ago (June 2017) we started seeing a plague of scams on Slack. Starting simple, they soon evolved into a variety of plays preying on greed on one hand and fear on the other.A slackbot...

From: Dave Appleton
May 17, 2018

This scam has been going on since November last year…..

This scam has been going on since November last year…..Is this a phishing scam?when I wrote about it having analyzed it in detailI did find out about the minereum false ERC20 balanceOf function later but it didn’t seem worth following up on.

From: Dave Appleton
April 21, 2018

From the ERC20 standard

From the ERC20 standardThe function SHOULD throw if the _from account balance does not have enough tokens to spend.andThe function SHOULD throw unless the _from account has deliberately authorized the sender of the message via some mechanism.Unfortunately the POWR contract does not do this...

From: Dave Appleton
April 11, 2018

Return values in solidity contracts

If the only other option is to revert, no point returning a boolI have seen, in various channels, comments saying that it is a good practice for a function that reverts on bad input to return a boolean true on success.function doSomething(uint someData) public returns (bool) { ...

From: Dave Appleton
March 10, 2018

Thanks — I will have a look.

Thanks — I will have a look.

From: Dave Appleton

Not to the best of my knowledge.

Not to the best of my knowledge. Gnosis have now released a wallet factory though and even an interface that helps.

From: Dave Appleton
Upcoming ICO's
This week overview
Cryptocurrency rates
*Last hour average price&change
Coin Name Price Hour
Bitcoin logo BTC $8245.16 -0.01%
Ethereum logo ETH $684.671 -0.4%
Ripple logo XRP $0.672358 0.15%
Bitcoin Cash logo BCH $1179.44 0.09%
EOS logo EOS $12.9333 -0.31%
Litecoin logo LTC $132.87 -0.15%
Cardano logo ADA $0.239342 -0.08%
Stellar logo XLM $0.319374 1.99%
Tronix logo TRX $0.079164 -0.22%
IOTA logo IOT $1.70766 0.27%
NEO logo NEO $59.5995 -0.63%
DigitalCash logo DASH $375.64 -0.55%