Cereal Ecosystem: Maintain Cryptoasset Investment Yet Receive Fiat
Cryptocurrency has been growing, the number of uses of it also increases as many companies develop technologies based on blockchain, and future benefits from it are almost advancing every year. Cryptocurrency is sometimes considered digital money or digital cash but both of those simply refers that it has a value which one can convert to cash. Now, the term crypto assets are used because of the wide use of cryptocurrency as an asset for investment. As an asset of investment, crypto asset seems to be more valuable than calling it as just a digital money. Now, whether someone considers cryptocurrency as digital cash or an asset, both consideration can all result to cash when one decides to, but weighing it as an asset for investment makes the choice between maintaining the investment or cashing it out for financial need as a hard problem for crypto asset holders.
The Cereal Ecosystem aims to solve the hard problem by allowing those who are in need of cash by exchanging their crypto assets as collateral. Before further explaining the Cereal Ecosystem, let us look at the current market of fiat lending on crypto assets. According to studies, although there's market volatility for crypto assets there is also liquidity which makes it ideal for loans in fiat. More importantly, obtaining a loan by the use of the crypto asset is a good offer to crypto asset investors. Not only do they obtain fiat but also retain their investment, at the same time, it is not disadvantageous for creditors because some lending services offers a loan for a certain percentage of the market value of the crypto asset and if it so happens that market value changes significantly against creditors, creditors have the right for margin call. Currently, there are two models of lending with crypto assets which are P2P loans and centralized loans. The main difference between the two is P2P loans earn commision from operations while the centralized loans earn from the loan's interest rates.
After getting our heads around the whole lending of fiat on the security of crypto assets let's go back and try to see how Cereal Ecosystem will approach the issue. It was already mentioned that Cereal Ecosystem is an ecosystem that will give an opportunity to crypto asset investors to receive a loan for their financial need through their crypto assets yet retaining their investment in those. It may look like a simple loan service but with Cereal System, these are divided into four solutions that broadly one consider as a loan but different in their own ways and is perfect for what participant currently needs. The Cereal Solutions that will be offered are Loans, Credit Cards, Business Loans, and Pay-by-installment plans for mining equipment.
The Cereal Solutions mentioned are based on the market participants such as crypto asset holders, cryptocurrency exchanges, ICO projects, and Miners. The Loans service of Cereal Ecosystem answers the crypto asset holder's problem of needing fiat money for their operation and expenses. The process of obtaining it goes simply as (1) Choosing the currency of the loan needed. (2) Confirmation. (3) Deposit the crypto asset in exchange for the fiat. (4) Receive the money. (5) Make monthly payments. Then, (6) completely paying off the loan to finally get back the deposit. As for the Credit Card service, it works similar to how Credit Card's work but before one can get started with the Credit Card, a deposit must be sent to Cereal. Upon receiving the Credit Card, the credit funds in exchange for the deposit, are at the disposal of the holder. To pay off the loan and retain the crypto asset investment, clients can make monthly payments and upon completing the payment, the client can continue to use the credit card by paying another deposit.
The third Cereal Solution is the Business Loan. Unlike the Loans service solution which is a direct exchange of the crypto asset deposit to fiat, the business loan offer is an indirect way of covering for business expenses. Through the Business Loan, Cereal will grant a line of credit in which can be used to pay the expenses such as staff salaries, business expansion, and the likes. The last Cereal Solutions which is the first Cereal product planned to be launch is the Pay-by-installment plans for mining types of equipment. As the name implies, it's the purchasing of mining equipment, and if there's the belief of growth of cash flow in the cryptocurrency yet not enough money to purchase it then this solution would be a good one. Installing mining equipment allows stable yield and purchase of the equipment can be paid by installment with the help of Cereal and its partnership with GigaWatt which can supply what the miners will need.
The Cereal Ecosystem could revolutionize the current lending market of fiat on the security of crypto assets and together with their partner, the whole ecosystem can become effective as it can be. In the future, participants like the borrowers, investors, merchants, and financial institutions can start to financially transact harmoniously. The Cereal Ecosystem system has its own token, CRL token, that provides benefit for its holder like better conditions in various Cereal Solutions as well as early access to products.
The Cereal Ecosystem token sale details are as follows:
Token: CRL
Price: 1 ETH = 2,000 CRL
Platform: Ethereum
Hard cap: $9.5M
Soft cap: $2M
Public Pre-sale: August 6, 2018 - September 6, 2018
Public Sale: September 6, 2018 - November 6, 2018
To know more about the technical details and aspects of the project plus their latest updates, visit their official social media pages and website:
Bitcointalk Announcement Thread: https://bitcointalk.org/index.php?topic=4298565.0
Website: https://cereal.cryptonomos.com/
Whitepaper: https://cereal.cryptonomos.com/static/files/whitepaper_eng.pdf
Telegram: https://t.me/cerealico
Facebook: https://www.facebook.com/Cerealfinance-205095610298116
Twitter: https://twitter.com/cereal_finance
Medium: https://medium.com/@cerealfinance
Bitcointalk Username: AmorFati
Bitcointalk User Link: https://bitcointalk.org/index.php?action=profile;u=2077040