The Japanese Internet giant GMO currency exchange has added four more cryptocurrencies to its credit program, which allows customers to borrow digital coins from the company. Initially, the program was launched last month only for Bitcoins (BTC), but now GMO has added Bitcoin Cash (BCH), Ethereum (ETH), litecoin (LTC) and Ripple (XRP).
GMO Coin, a subsidiary of the conglomerate GMO Internet, announced this week that it will add four cryptocurrencies to its loan program, which allows customers to borrow the company’s crypto-loans and receive passive income.
Interested clients must apply from May 9 to May 23. If the number of those who wish exceeds the expectations of the company, then the organization itself will choose who to lend coins from. Under the new rules, the company can lease BCH, ETH, LTC and XRP from its users in addition to bitcoins. Customers can provide from 100 to 1000 ETH; from 50 to 500 BCH; from 300 to 3000 LTC; and from 100 000 to 1 000 000 XRP. The repayment period is 150 days. All borrowed cryptocurrencies will be returned to customers in the same amount and form through this period of time.
The exchange will pay customers 2.04109589 ETH for every 100 borrowed ethers. For 50 BCH the company will pay 1.02054794 BCH. For 300 LTC customers will receive 6.12328767 LTC. For 100,000 XRP, the profit will be 2 041.0958 XRP. GMO explained that the fee “is calculated from 5% per annum (including taxes)”, and added that taxes will also be charged from the commission for a loan.
GMO Coin – is fully licensed in Japan crypto exchange. Nevertheless, it recently received recommendations to improve its work from the financial regulator of the FSA country, which began checking all exchanges after breaking into Coincheck in January this year. Similar recommendations were received by another exchange with a license – Zaif.
The company recently released financial results for GMO Coin, demonstrating an operating loss of 760 million yen (~ 7 million dollars) in the first quarter of this year. The cost of servicing the exchange has grown by about 560 million yen (~ 5.1 million dollars) from the previous quarter. Most likely, this is due to the need to make changes in the work that the financial regulator required of the company.
However, the GMO conglomerate continues its successful development in other directions. Since its launch in February, the company’s mining division has produced more than 900 BTC and 537 BCH, and last month the company doubled its hashed. Source: bits.media