Advanced Reservations for Japan’s First Specialized Cryptocurrency Lending Service “CoinOn” has Begun

Countir Bank Co., Ltd. (Representative Director Kenji Kakai, hereinafter referred to as “the Company” Shibuya, Tokyo), a joint venture between Countir Co., Ltd., which specializes in FinTech technology, and VOYAGE GROUP Inc. (TSE First Section 3688), which is strengthening business development in the FinTech industry, began accepting advanced reservations for its new service “CoinOn,” Japan’s first service specializing in cryptocurrency lending, on August 30, 2018 (https://pre.coinon.cc). The official release is expected sometime in 2018.

“CoinOn” advanced reservation page https://pre.coinon.cc
Those who have made the reservations will be sequentially invited to use the services prior to the official release.

The cryptocurrency market has rapidly expanded since 2017, and although there are users who actively conduct transactions at the exchange, other users leave their purchases in their accounts at the exchange or in their wallets without selling them. Given these circumstances, some of the domestic cryptocurrency exchanges have attached cryptocurrency lending as part of their services. However, the lending period is fixed anywhere from two weeks to one year, making it far from convenient for users.

In order to solve these problems, “CoinOn” was created as the first service in Japan to specialize in the cryptocurrency lending service, based on its concept of “wisely increasing cryptocurrency.” By lending Bitcoin (BTC) to CoinOn*, the user will be able to receive Bitcoin (BTC) with a designated rate added onto it every day. Although the rental fee fluctuates daily, the expected annual return is around 5 to 10% (tax included). In addition, because the loan period is can be as short as one day, users can apply for withdrawal at any time. With this, users can easily rent out their Bitcoins, receive their rental fee, and apply for withdrawal.

*The minimum loan value to CoinOn is expected to be “at least 1 BTC.”

How to use “CoinOn”

The customer and the Company sign a cryptocurrency loan agreement and the customer lends the cryptocurrency on hand to “CoinOn” through the cryptocurrency exchange or wallet and receives the predetermined fee for the cryptocurrency loan as often as daily.

Since the minimum loan period is one day, the loan fee is added onto the balance each day, and the sum is loaned out automatically the next day. If the user requests a withdrawal, the funds will be withdrawn to the specified Bitcoin address within five business days. Furthermore, since the minimum loan period is one day, there are no cancellation fees.

Ex.) On September 1, 2018, the user lends 1 BTC to the Company. If the Company approves it the next day and the user applies for withdrawal 30 days later, the user will receive “1.00813179 BTC.” The rate changes every day, but this example assumes that the daily interest rate of 0.027% (about 10% in terms of annualized rate with compound interest) continues for a month.

Calculation formula: (1 + 0.00027) to the 30th power = 1.00813179

*The ninth decimal place is less than 1 Satoshi and is therefore truncated.

Features of “CoinOn”
1) Loan fee fluctuates every day and is added on daily. With compound interest, the expected yearly return is 5 to 10% (tax included).
2) The loan period in one day units. Users can apply for withdrawal at any time.

“CoinOn” will only handle Bitcoin (BTC) when the service launches but the use of other cryptocurrencies in the future is being planned.