After hubris – essentially over-mighty, prideful overreaching – comes nemesis (the comeuppance that fate decrees). So, following on from yesterday’s look at the increasing use of crypto-assets by peer-to-peer (P2P) platforms, we find a highly entertaining news report from Crowdfundinsider. The news site carries a story of the launch of a new crypto exchange called – yes, really – HubrisOne.
According to a note from the company, cryptocurrency exchange HubrisOne will launch an equity crowdfunding offer on an equity crowdfunding platform this week. The offering will first be launched to insiders that have downloaded the App. While HubrisOne posted on Medium in December the offering will be live on Crowdcube, CI has received conflicting information as to which platform will host the round. We just know the investment opportunity will “be hosted on an EU regulated crowdfunding platform.” HubrisOne claims that over 13,000 individuals have already registered for access to their platform.
According to their site, HubrisOne is a platform that enables users allows globally to “instantly create EUR, GBP and USD current accounts, connect their existing bank accounts, create up to 200 cryptocurrency wallets and execute cross-border payments on the Stellar blockchain all within a few taps.” Not all crypto exchanges allow fiat to crypto transfers.
We have our own views on the way markets can overreach themselves and then see a correction (hubris and nemesis) – all followed, one hopes, by a sensible way forward (after hubris and nemesis, synthesis). We’ll be blogging on this topic and its application to the P2P sector soon.
New loans are expected on site shortly – this will help lenders to diversify their portfolio and so spread risk.
A Process Guide To Innovative Finance ISA Investment
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2018/19 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.