Collateral Network COLT Price Prediction: Is it distinctive enough to survive?
Collateral Network COLT Presale: The Collateral Network allows users to get a loan via fractionalized NFTs. Is it distinctive enough to survive the competition?
Collateral Network COLT Price Prediction: Is it a Good Investment?
Collateral Network is a crowd-lending platform where users can borrow against real-world assets with the help of blockchain technology. The platform allows its users with quick access to loans at competitive prices.
The collateral network provides loans to borrowers by minting NFTs backed by users’ physical assets.
COLT is the native token of the Collateral Network and 38% of its total supply will be sold during the pre-sale period. The following are the primary use cases of Collateral Token (COLT):
- Users can stake their Collateral Network tokens to earn passive income.
- COLT token holders can participate in the governance of the platform through voting processes.
- COLT token holders will be able to get discounts on trading fees.
- Holding COLT tokens unlocks various utilities within the ecosystem.
Key features of Collateral network
- NFTs that are backed by real-world assets will allow borrowers to unlock liquidity via crowd lending using the Collateral network.
- The platform allows confidential transactions without any credit footprint.
- The fee charged by Collateral Network is very less comparatively.
- Collateral Network connects lenders and borrowers through Web3.
- The collateral network doesn’t take into account the users’ credit score (unlike traditional loans).
- The platform allows lenders to trade fractions of their NFT loans in the marketplace.
- Users can turn their physical asset into a tangible NFT (or T-NFT) and can fractionalize it.
- T-NFT allows the users to borrow against it.
The following are the assets against which users can borrow money:
- Real Estate
- Fine arts
- Fine wine
- Gold bars
Collateral Network COLT Price Prediction: Competitor Analysis
The Collateral Network provides its users to gain access to liquidity through multiple lenders. In simple words, it creates fractionalized NFTs that act as collateral and thus, multiple lenders can collectively finance one loan.
Also, any physical asset (NFT backed) can act as collateral with the Collateral Network. Hence, the platform is quite unique in itself.
However, its indirect competitors will include other liquidity providers and lending protocols that allow users to borrow and lend digital assets. The following are the major players in this domain:
Aave: Aave is one of the most popular platforms that allows users to borrow and lend cryptocurrencies. With this platform, lenders can earn interest on their deposited assets and borrowers can use their crypto as collateral to get loans.
Alpaca Finance: It is another lending protocol that helps lenders to earn stable yields on BSC. The platform provides borrowers with undercollateralized loans and hence helps increase their profits.
Collateral Network COLT Price Prediction: Price movements of the above-mentioned lending protocols
The following are the past performances of the top lending protocols, as discussed above.
Past performance of AAVE
- Last 7 days: +1.9%
- Last 1 month: +8.0%
- Last 6 months: +9.9%
- Last 1 year: -26.2%
Past performance of ALPACA
- Last 7 days: -+12.7%
- Last 1 month: -6.8%
- Last 6 months: -4.9%
- Last 1 year: -48.4%
Current market scenario for the crypto to be launched
The Collateral network is quite a unique platform that allows its users to get loans against their real-world assets i.e., it unlocks liquidity for real-world assets via blockchain technology. Moreover, it provides quick access to loans at very competitive prices.
Therefore, it solves the problems associated with traditional financial services. Also, its utility token provides certain benefits to its users within the network. For instance, discounts on trading fees, additional rewards etc.
Hence, COLT seems to potential to grow in a favorable market condition.
The roadmap of the Collateral Network is divided into four phases, as detailed below:
Phase 1: The first phase includes the creation of the smart contract, the launch of a presale website, the development of a social community, the COLT token audit and the phase 1 marketing campaign.
Phase 2: This phase includes phase 2 marketing, development of the PR machine, the launch of influencer marketing, beta development, the token launch on Uniswap, and coin listing on Coinmarketcap and Coingecko.
Phase 3: Phase 1 includes listing on CEX, the launch of a private investor club and the onboarding of a brand ambassador.
Phase 4: It includes round table NFT launch, multi-chain integration, tier-1 CEX listing, the launch of collateral asset event and the launch of collateral NFT exchange.
Also Read: Metacade Price Prediction
Collateral Network COLT Price Prediction: Conclusion
The Collateral network is a unique fractional NFT lending platform using which borrowers can quickly get liquidity. Furthermore, it allows users to invest in asset-backed loans. Even though there are many liquidity providers available in the market, the Collateral Network has some distinctive features to offer. Thus, it will certainly affect its price
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.