MCO: Put Your Crypto and Fiat to Work – CryptoOneStop
This year, MCO decided to custody all their clients’ funds with Ledge Vault . This ensures 100% of the funds are in cold storage, but complete control remains with MCO. Cold storage significantly reduces the number of attack vectors because the funds are isolated from internet connection. It will essentially provide the same level of security as the Ledger Nano, but on a larger scale. In fact, this service is offered to large financial institutions, asset managers, and family offices.
Most banks typically make 15–25% with their depositors’ funds. In return, depositors earn less than 1% with banks. Moreover, many brokerages engage in securities lending to generate additional streams of revenue but rarely share the profits with their users. In contrast, MCO shares a larger portion of their profits with their depositors. They produce profit by lending depositors’ funds to hedge funds, exchanges, institutional traders, and issuing asset backed loans. In other words, they have adapted profit models from the legacy finance world into a crypto-focused platform.
As of recent, many prominent figures in the crypto space have speculated on bitcoin’s prospects as a global reserve currency.
If you buy this claim, you should consider putting your bitcoin to work. Consider this, by lending out $10,000 worth of bitcoin today you will earn $800 a year or about $15 a week. Lets say in 10 years bitcoin becomes the global reserve currency and is worth 1 million dollars. In this scenario, without compounding, the gains will earn you $80,000 a year or $1,500 a week. Assuming bitcoin becomes the global reserve, lending a little today could help secure your financial sovereignty.
In my review video, I further explain the benefits of lending out a deflationary currency vs an inflationary currency:
Despite my enthusiasm for the platform, I must confess there are some risks. Anytime we rely on a third party, we are trusting they will act in our best interest. This is impossible to guarantee and therefore a risk we all must accept. Also, many lending platforms use an oracle to mediate collateral-based loans. To date, I have not heard of any adverse events but as these platforms grow issues may arise. Lastly, the biggest bottle neck for many of these platforms is regulatory clarity. Today MCO may be compliant, however with the addition of newer regulations this could change.
The MCO platform has something for everyone. Crypto enthusiast are able to put their crypto to work and earn passive income. Additionally, they can use their MCO credit card to spend the interest they earn. Are cryptocurrencies too volatile for you? No problem! Just lend out USD stable coins and earn up to 8%. It is a great way to lure in the crypto skeptics. Once they experience and realize the benefits of platforms like MCO, they will be hooked.
Platforms such as MCO are only the beginning of financial liberalization. In the legacy finance world, the wealthy have erected many barriers to entry. The crypto movement will shatter these barriers by creating more inclusive platforms: platforms which provide access to financial instruments and investment opportunities not available to most retail investors today. You can participate in the democratization of finance by downloading the MCO app today.