Crederoom is a new cryptocurrency project that has emerged to disrupt the lending industry by applying the blockchain and making transactions more transparent. The company, based in Zug, Switzerland, is led by experts in finance, computer security, and law.
Crederoom will aim for the market of small loans that range from 50 to 500 euros over a period of 30 days, with rates from 150 to 1,500 percent. The company will operate within the framework of legislation in countries of the European Union. The company believes this segment of lending is poised for significant growth, and will use the advantages of blockchain technology to capture it.
The company began development on its software platform in April 2017, emphasizing analytics to prevent fraud, gauge credit risk, and analyze credit scores. It will implement a procedure to fight identity theft called “Initial Customer Identification.” This process entails a customer sending a custom link to an email address that links back to the Crederoom website, and using SMS codes for phone verification. The company will also use other methods to prevent identity theft, such as storing the customer’s unique IMSI or IMEI of their mobile device.
Additionally, the company will require the uploading of documents such as ID and proof of address to combat fraud. The company will manually review discrepancies detected by software. Bank account verification is another practice employed by the company to prevent fraud, and customers will be asked to make a minimal one-time payment to Crederoom for verification. The company also will verify income and employment status when needed. Crederoom will explore the possibility of applying biometric data to combat fraud in the future.
The credit history of borrowers, including loans issued previously to them, will be available for lenders on the platform. Interest rates charged to borrowers will be based on the borrower’s history and will be determined by software analytics. Borrowers, in turn, will be able to select which method of communication they prefer, such as by phone, email, or messenger, and will have access to their loan officer’s contact information.
Crederoom software is open-source, and can be viewed by anyone. The company believes that transparency will be important to building trust with customers.
The initial coin offering (ICO), ending November 15, 2017, aims to fund the project’s continued development and expansion. The Crederoom token, CDRT, is ERC20 compatible, and as such will run on top of the Ethereum blockchain. To maximize the value of CDRT for token holders, Crederoom will conduct token buybacks to reduce the supply of the tokens and will issue dividends in Ethereum (ETH) to token holders in proportion to their ownership of CDRT in October of every year.
*I am receiving Crederoom tokens for the growth of the community.