With the rise of the cryptocurrency market in 2017, many new companies are appearing and a niche that is almost oversaturated in the last few months is the loan niche. Taking their business model from the High Yield Investment Programs (HYIPs) these cryptocurrency loan companies use the investment of their clients to get more money for them.
Today our subject is new loan company that uses the blockchain technology called PowerLoan. Is this company a legitimate investment or another scam? Read our review and discover that.
What is PowerLoan?
PowerLoan is a new cryptocurrency company that uses the SHA256 algorithm, a very popular algorithm, to create an online funding system that can be used in an independent way from any country or institution in the world. By using this system, the clients of Powerloan can make micro loans to the company and earn tokens. The company also states that it is possible to earn tokens via mining, trading and even referrals.
The company states that the system was tested by a small group of people that registered as users before the token sale during the development of the product and that they Beta-tested the program to deploy a quality version of the Powerloan program.
Powerloan will use security measures to avoid hackers and any type of cyber threat that can appear online. The company is currently offering bounties for people who find vulnerabilities in the system, so it looks like the company is genuinely concerned about the safety of its clients.
How Will PowerLoan Make Money?
If you are in doubt if PowerLoan is a scam, one way is to know how the company will use the funds gathered during the ICO and with the loans to actually have money to give back to the clients. This is important because if it does not look that the company will be able to invest and get money to give back to the investors, it is probably a scam or it will have inconsistent or unsustainable payments.
Powerloan states that 35% of the money will be used in investments targeting renewable energy and smart home technology. The company believes this to be a profitable way, so it will invest in both these assets. The other 35% of the funds will be used in the tokenization of green energy and blockchain technology. This means that 70% of the money will be invested in these areas.
20% of the money will be invested in marketing to ensure that the money will keep flowing to the company and 10% to run operations and to pay the personnel of the company.
How to Earn PowerLoan POWL Tokens?
PowerLoan (POWL) tokens are SHA-256-based and have a max supply of 21,000,000 POWL tokens. There are many different ways to earn tokens. You can buy them, trade, stake, use referrals or loan them.
The ICO crowdsale will be happening on May 2018 and it will be the main way to get tokens fast. Unfortunately, we do not have information about prices. After that, you can buy them on exchanges (KuCoin, CoinExchange, HitBTC, Mercatox and Stocks Exchange are all confirmed at the moment).
If you loan POWL tokens for the company, you will receive interest rates. Check the packages:
- Package A: 1.75% daily for 60 days, penalty of 5% if you withdraw early.
- Package B: 1.85% daily for 90 days, penalty of 6% if you withdraw early.
- Package C: 2% daily for 180 days, penalty of 7% if you withdraw early.
You can earn up to 8% from referrals. Finally, you can also stake the tokens. Just put on stake mode in your wallet and you will receive some money from helping the network to function properly.
Is PowerLoan (POWL Token) ICO a Scam?
We are not completely sure this time. PowerLoan does seem to be more transparent and it explains its business better than many scams out there, but it does have some red flags. The names of the people who work in the company, for instance, do not have their real names, only first names.
This is somewhat uncommon and it does raise some caution. While this looks to be a company that can be more trustworthy than your average lending cryptocurrency company, you should definitely be cautious.
The PowerLoan ICO (POWL Token) Conclusion
Our advice would be not to invest in Powerloan. The motive is actually pretty simple: this company is hardly worth the risk. There is definitely some risk of this company being a scam and an even bigger risk of it being a failed project.
There are just too many lending companies these days. PowerLoan does not really do anything sensational or new, it is just a more trustworthy-looking company than the average one. It might even give you some profit, but we deem it too risky for it to be a good choice.