Latest Crypto Innovations – Plus Loan Auction Latest
Regular visitors to this News site will know that we regard the issue of digital currency as resolved. It is not just the future, but the present. It’s been possible to effect crypto transactions by ATM. The Japanese can pay themselves in cryptos, and the Swiss can buy train tickets from machines on the station platform using cryptos.
Then again, every now and then something comes along that makes us wonder: is this innovation or a snappy PR concept? Finextra reports an intriguing tale:
Sweatcoin, an app that pays people to walk, is set to launch its own crypto token.
The UK-based company has signed up 64 million registered users for its app that lets users earn sweatcoins by recording their daily steps.
These coins can then be used to donate to charity and to get deals when buying goods and services from over 600 brand partners, covering everything from iPhones to Tidal subscriptions to yoga classes.
Now, the firm is offering users the option to have their in-app sweatcoins matched 1:1 with Sweat tokens at a token generation event timed for this summer. Each user will be given a Sweat Wallet which will generate fees by enabling a suite of DeFi functions, such as the exchange of Sweat into other crypto, liquidity provision and staking.
Sweat will be built on Ethereum and use the eco-friendly Near as the blockchain for the token, with the Near Foundation investing in the project, alongside a host of other institutional backers.
The end of the 2021-22 tax year and the deadline for Individual Savings Plans on Tuesday leaves us with just one open loan auction.
- Mar-Key has a credit rating of A+, a yield of 7 per cent and a term of two years. It is currently 42 per cent filled.
- You can see more detail by logging in and downloading the credit note.
Historical Performance And IFISA Process Guide
- Money&Co. lenders have achieved an average return of more than 8 per cent gross (before we deduct our one per cent fee).
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
- Money&Co. has been lending for over seven years and has only had two bad debts so far, representing a bad debt rate of 0.03 per cent per annum.
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:
- Step 1: Register as a lender. Go to the login page, and go through the process that the law requires us to effect. This means we have to do basic checks on you to comply with money-laundering and other security requirements.
- Step 2: Put money into your account. This is best done by electronic transfer. We can also process paper cheques drawn in favour of Denmark Square Limited, the parent company of Money&Co.
- Step 3: Buy loans in the loan market. Once you’ve put cash in your account it will sit there – and it won’t earn interest until you’ve bought a piece of a loan. It’s this final step that requires lenders and IFISA investors to be pro-active. Just choose some loans – all loans on the Money&Co. site can be held in an IFISA – and your money will start earning tax-free interest.
The ISA allowance for 2020/21 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.