In a latest development, EXMO has called off its pending ICO launch as it was humbled with its own funds to provide margin loans and other products.
It is seen that most of the firms able to raise capital through an ICO find difficulties to implement the plans outlined on their white paper.
The company is eager to change the situation by offering the EXMO coin to raise additional investment capital. It was reported that half of the raised funds would be used to satisfy the increasing demand for margin loans. The remaining capital would be stored as the margin loan insurance fund. It will be implemented after acquiring necessary license required for smoothening fiat money transactions, marketing expenses and ensuring bonuses for investors.
EXMO’s PR manager, Sofia Neduzhko, said, “The collected investments will be used to expand our dedicated margin loan fund. Instead of being a platform for peer-to-peer lendings, we are going to provide loans to our customers in crypto and fiat currencies. This will allow us to provide a leverage for more traders to boost the development of EXMO.”
EXMO founder, Ivan Petukhovsky, claimed that the company has been performing well since the past five years which has reduced the amount of risk involved with EXO tokens. He added that coin’s value would be determined by EXMO’s performance plus the rates of other altcoins on the platform.
The firm has been operating since 2013 and manages 1. 5 million users with an average daily trading output of 10,000 BTC. Market’s splurge massively profited the company in 2017 with a 188 percent hike in client base. After the sale, the coin will be traded on the exchange in combination with EXO/ETH and EXO/BTC. It aims to add other altcoins with EUR and USD. EXMO has claimed a token buyout guarantee with a warranty in its white paper.
As per the long-term plans, the company will be acquiring its competition as soon as it raises $250-$350 million. It will help the company in enlarging its scalability in new markets.
Secondly, the crowdsale will launch margin loans that enable traders to gain more in times of currency fluctuations by borrowing extra funds. The firm will offer 1:2 leverages over margin loans on USD, RUB, BTC and ETH and add more options as demand rises.
It should be noted that an investor will be getting 50 percent of the profits furnished by margin loans. The gains would be distributed as dividends on a monthly basis according to the size of each customer’s investment. In order to know the value of the coins, one can jump over to the EXMO Coin Calculator.
Thus the company will be serving its clients with profits over the loans on a pre-scheduled time period and hopes that existing tokens will be the base of every gain. The company expects that EXMO exchange enjoys rapid development for the betterment of the entire system.
Yet it should be recognized that these are just plans and we have already seen companies’ transform their structure according to the need of the market.