Libra Credit ICO Review
Libra Credit is a decentralized lending ecosystem that facilitates open access to credit anywhere and anytime based on the Ethereum blockchain.
The Libra Credit will be launched in July 2018 with crypto-to-crypto and crypto-to-fiat lending underpinned by its industry-leading credit management capability and 4 distinctive partnership networks forming a world-class lending ecosystem, encompassing:
- In-house Proprietary AI-based Credit Model(s);
- Customer Acquisition & E-Wallet Partnership to drive adoption;
- Lenders & Stablecoin Partnership to drive liquidity;
- Extensive Exchange Partnership Network to minimize default;
- Identity Verification Partnership Network to expedite KYC & verification process.
Libra Credit is a global initiative with a mission to provide financial inclusion and lower the cost of financial services. The team has a track record in digital credit services across Asia. Powered by its proprietary big data, AI-based credit assessment technology and existing global partnership networks, Libra Credit has the expertise and capabilities to realize its mission.
- Website: https://libracredit.io
- Token symbol: LBA
- Token type: ERC20 (Ethereum platform)
- Whitepaper: https://www.libracredit.io/page/Libra%20Credit%20Whitepaper.pdf
- Hard cap: $26,000,000
- Price per token: $0.10
- Total possible tokens: 1,000,000,000
- Token distribution:
- Founder & Management: 20%
- Private sale 20%
- Public sale 20%
- Advisors, Backers, Bounty 10%
- Reserve 30%
- Use of proceeds:
- Legal and Regulatory: 10%
- Marketing: 40%
- Engineering & Platform dev.: 40%
- Operation & Administration: 10%
Token distribution timeline
Tokens will be distributed after the public sale at the end of May. Public sale is from May 1st until May 14th.
- 2018 Q2:
- BA Token Sale & Token Activation
- 2018 Q3:
- Libra Credit Platform (Desktop version) Launched for crypto-to-crypto/fiat lending
- 2018 Q4:
- Libra Credit mobile App Launched
- Other digital asset-to-crypto/fiat lending enabled with extended partnership networks
- Digital/financial/physical asset-to crypto/fiat lending enabled with global partnership networks
The desktop version of the platform will launch already in July 2018, while the mobile version is planned to launch in fourth quarter this year. The software is already at beta stage and is currently undergoing testing.
The LBA tokens will be utility tokens with the following applications:
Platform access fee, allowing borrowers to submit loan application.
Medium of exchange on the Libra Credit. For example, service fee will be charged for every successful transaction.
Token rewards are granted to stakeholders in the case of the following: Service – Developers that contribute to development for their services; and Referral – Successful introductions of other lenders to the Libra Credit.
Any LBA Token holder comprises of the Libra Community which governs the network by: Platform Development Planning – vote on specific projects / proposals to facilitate platform technology development.
The team is 5/5 stars when it comes to successfully launching a lending platform across Asia. Both the CEO and COO have each lead a market leading fintech company, each of them funded by Sequoia Capital.
The founder already built and ran a major credit company in China with more than $850m in lending at the end of 2017. As head of core payments for Paypal China and head of Paypal US global banking platform he led the global card association and banking partnership of the company, giving him invaluable experience and network in the space.
Among their advisors are Scott Thompson, formerly President of Paypal and CEO of Yahoo.
Lu Hua – Co-Founder & CEO Payments, Financing & Risk Management Expert CEO of moKredit; China’s top digital credit servicing company. Successfully funded by Sequoia Capital, Bertelsmann Asia Investments & Ventech China Paypal China head of core payments; led and managed card association and banking infrastructure and partnerships Paypal US head of global banking platform; led global card association and banking infrastructure and partnerships.
Dan Schatt – Co-Founder & COO Fintech and Payments Expert Chief Commercial Officer at Stockpile Inc.; a leading fintech company invested by Sequoia Capital, Fidelity Investments’ Eight Roads Ventures, Arbor and Mayfield Funds & Ashton Kutcher General manager of financial innovations at PayPal
Howard Wu – Chief Scientist Blockchain and Cryptography Expert Managing partner of Dekrypt Capital; a blockchain investment firm with an emphasis on privacy preserving protocols and early-stage ventures Advisor of Blockchain at Berkeley; a university-based eco-system for blockchain and specializes in educating the community and helping companies benefit from blockchain technology Software engineer of Google
Master in Electrical Engineering and Computer Sciences in UC Berkeley Bachelor’s Degree in Computer Science and Applied Mathematics in UC Berkeley.
Scott Thompson – CEO at tuition.io. Formerly President at Paypal, CEO of Yahoo.
Kenneth Oh – Legal and Regulatory Expert Senior partner with Dentons Rodyk & Davidson’s Corporate Practice 20 years of legal advisory experience in venture capital, private equity, IPOs/Token Sales and post-IPO/Token Sale funding, as well as M&A
Shuoji Zhou – Experienced Crypto Hedge Fund Manager in Asia Founding partner of FBG Capital; a leading digital asset management firm in blockchain-based capital market Early investor of a broad spectrum of blockchain companies; accumulated extensive experience in digital assets trading and investment
Shoucheng Zhang – CEO of Danhua Capital; Stanford University tenured professor of Physics, Electrical Engineering and Applied Physics
- The team already built a leading and innovative consumer lending company in China, and they bring massive experience bridging consumer finance with the banking sector through high level positions in Paypal and Stockpile Inc. Together with a super strong advisory this team is perfectly positioned to get a strong foothold in the Asian crypto lending market.
- The team already has a beta version of their product and are very close to a launch. Already in July 2018 will the platform be ready for customers taking loans backed by crypto assets.
- Using his experience and network from his time at Paypal, the CEO has already secured key partnerships with leading banks in China, Japan, South Korea and Singapore. The banks will supply liquidity for the loans and allow Libra to issue credit cards to loan takers. These partnerships demonstrate the CEO’s ability to use his clout from the Paypal days to bring the product to market fast.
- Libra Credit has been invested in by FBG capital, which is a very reputable and high ranked digital asset management firm in blockchain-based capital market.
- The hardcap of $26m is relatively low for a project that aims to dominate the consumer crypto lending market in Asia’s major markets.
- Libra is in direct competition with NEXO – another very promising lending platform, and the investment cases for both of these projects are strikingly similar. However, Libra is more focused on the Asian market and in tomorrow’s global crypto backed consumer lending market, there should be sufficient room for both key players as well as others.
- The token has a unimpressive use case as a utility token compared to direct competitors such as Nexo, whose token give 30% dividends.
In conclusion, this is project is super promising. They have key figures like former Paypal head as CEO, and has built market leading consumer lending businesses in Asia. They can become a real key player in this market for Asia, which is big enough to grow exponentially on yearly basis.
For flipping, we’re very bullish. There’s no vesting (lock up) for the tokens. The $12m crowdsale allowance will most likely be oversubscribed, and with the crowdsale taking place in May, the tokens will most likely arrive on exchanges in a newly optimistic bull market.
Long term potential
The long term potential is very high. The crypto lending market is going to be one of the biggest in the years to come, and by taking just a small bite of it, Libra will be able to see their tokens increase many fold in value. The team has a proven track record building market leading lending companies in Asia, so they have all the prerequisites to achieve their business goals in the space.
Comparison of Libra vs other lending platforms:
Mobile app (currently in testing phase):