In recent years we have attended the cryptocurrency boom. Some thought it was a fad, others even pointed to a huge scam. However, reality has taught us that cryptos have changed the way we understand money and the world of investments. And they constantly keep appearing new projects and creative investment models like the one we discussed in this post.
What is EthicHub?
EthicHub is a Spanish start-up that has burst into the world of cryptocurrency investment with an innovative project, clearly differentiated from other similar investment platforms.
Its objective is to facilitate access to financial services for rural communities in countries where there are hardly any possibilities of obtaining credit. In other words: lend a hand to those who have historically been excluded from the financial system and support their projects.
Through its platform, Investors can lend money directly to local producers, without having to resort to financial intermediaries. In this way, the process is more agile, more economical and less risky.
Currently, the majority of projects managed by EthicHub are located in countries like Mexico and Colombia, focused especially on rural areas dedicated to the production and export of coffee. The social impact of these actions is enormous, as it contributes in a decisive way to many people being able to earn a decent living from their work.
A great investment opportunity
Obviously, EthicHub investment projects would not be possible if they did not at the same time offer a great attraction for investors. The truth is that these can obtain up to 8-10% profit simply operating from your home computer or even from your mobile.
Is the tecnología blockchain which makes this free circulation of money possible between investors from countries with developed economies and producers from emerging countries. The operating costs of the loans managed by EthicHub are really low, around 1%. In addition, they are protected by a double guarantee system.
In summary, we are faced with a system in which both parties obtain an unquestionable benefit:
- On the one hand, the investors They achieve double insured benefits, through the real asset and through the collective collateral system.
- On the other hand, these investments allow small producers have credit to start your business and ensure a means of subsistence.
EthicHub and the Linux philosophy
The social impact and collaborative economy objectives defended by EthicHub fit very well with the Linux philosophy, in which concepts such as cooperation and learning have so much weight. This makes this investment opportunity very interesting for members of this great community.
The blockchain technology used by EthicHub guarantees the security and transparency of transactions. All loans and payments are recorded and verified on the blockchain. This provides a greater confidence both for investors and for recipients of credits. On the other hand, the platform uses smart contracts, thus eliminating additional intermediaries.
Another interesting aspect to highlight is that EthicHub offers, through its platform, the access to educational resources and de financial management. The information necessary for people in the agricultural communities of these countries to learn to make decisions and improve their quality of life in the long term. That is why it can be said that EthicHub is a cryptocurrency whose objective is also to promote financial inclusion and create economic opportunities.
The Ethix Token and the Compensation Fund
One of the pillars that guarantees the proper functioning of the investments made through EthicHub is the Compensation Fund, intended to cover investors in the case of failed projects. This system guarantees that the investor always receives the principal of the loan contributed in addition to the accrued interest. Whatever happens.
This fund is based on a carefully designed token: the Ethix. Among other uses, this token fulfills the function of liquid collateral that serves as collateral for platform loans. The compensation system contemplates the settlement of tokens in the crypto market, with sufficient volume to compensate investors if necessary.
4% of each new loan granted goes to the Compensation Fund, which results in a reinforcement of the security of the platform. Likewise, any investor can acquire Ethix tokens, thus acting as guarantors for small producers.