During the period of long-term steady in the crypto-currency market, the client may not want to sell the cryptocurrency before the price grows and at the same time he need cash. In this case it is possible to get fiat money by pawning cryptocurrency into the pawnshop. For the client, it is possible to use the crypto pawnshop for temporary placement of assets, while the owner of the pawnshop receives a fixed interest.
Soft-logic company offers own solution – crypto pawnshop on the basis of Pay-Point crypto processing. The organization of crypto pawnshops using self-service terminals is possible in the form of standalone solution, and in conjunction with the functionality of purchase and sale cryptocurrency in one terminal.
When using crypto pawnshop functionality, client is additionally acquainted with the terms of the transaction, including the daily interest and the system for reducing the risks from the rate volatility of the cryptocurrency. It consists of a basic assessment of the client's cryptocurrency asset (for example 50% of the market value – when issuing $1000, it is necessary to pawn $2000 of cryptocurrency), as well as the rules for automatically selling pawned cryptocurrency in case of a strong depreciation (depends on the asset based valuation). Interest adjustment is available to the owner of a cryptocurrency pawnshop.
Description the process of making pawn at the crypto pawnshop from the client's point of view:
— Client select the service «Cryptocurrency pawn shop» on ATM
— Select cryptocurrency for the transaction (Bitcoin, Litecoin, Ethereum, Bitcoin Cash), select amount of the cash to receive
— Receive the QR code of the wallet, and the amount based on selected cryptocurrency, which need to be sent to the wallet
— After receiving the necessary number of confirmations in the blockchain network, client can receive cash, by logging in with his phone number and the password received in the first stage
— The system stores the client's cryptocurrency, and guarantee a return for the original transaction amount plus interest
— For the return of cryptocurrency, customer needs to deposit specified amount of cash (original amount + interest). When deposit amount larger then specified sum, the difference will be transferred as cryptocurrency to the client at the current exchange rate of the system (will be create transaction of selling cryptocurrency according to the difference)
This crypto ATM with additional functionality of the crypto pawnshop was presented at the Russian Blockchain Week 2018, organized from May 21 to 25 in Skolkovo Innovation Center. The attention of the interested participants was focused on combining two solutions demanded by end customers, high quality terminal interface, back-office with detailed monitoring and extensive customization capabilities.
Prospects for the development of crypto pawnshops include their switch to online, with the possibility of the client to view their transactions on the Web portal, as well as make new transactions with the ability to transfer funds via payment gateways (to cards, to bank account, etc.). Soft-logic company is ready to implement this type solution.
At the moment, our crypto exchange terminals are actively used by customers for buying/selling Bitcoin, Ethereum, Litecoin, Dash and Ripple. Crypto pawnshops offers the opportunity to pawn Bitcoin, Ethereum and Litecoin. At the same time, our comprehensive solution is not limited by this currencies and can be used for any type of cryptocurrency presented on the market.
Soft-logic company invites partners and potential customers within purchase and sell crypto-currencies solutions, blockchain technologies, crypto exchange ATM’s and wallet systems to cooperation. The company's specialists have high skill level in the development of highly loaded, scalable solutions in these areas. In addition, we are always ready to adapt the unique solutions for specific requirements depending on the region or country.
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