Part A: REAL LIFE VALUE OF PROJECT (60/100)
ETHLend wants to provide lending via the Blockchain. The advantage for users is:
- Lenders receive a relative high interest rate
- Borrowers can receive their loan pretty easy without a lot of administration.
Lending via the Blockchain can really change things, because it speeds up a lot of processes and skip tons of administration but it is also very risky. The current lending space asks for securities that you will pay back your loan. What ETHLend does is providing a peer-to-peer service between users. So, lender user has the risk to lose his money (at this moment). We also do not see the purpose of issuing LEND tokens because ETHLend is an ERC20 platform (so you can pay with whatever you want).
What gives us some kind of faith is that they already had customers on their platform. At the moment of writing they had 500ETH (around 375.000USD) in lending volume.
Note! there is a big advantage in price volatility for lending via the blockchain. For example: 1ETH now is 800USD, but in a year it can be 1200USD. If you now have a loan of 10ETH the fiat-value is 8000USD, but next year it is 12.000USD. This means you pay back more then, what makes a blockchain loan extremely expensive.
Part B: DISRUPTIVENESS OF PROJECT (55/100)
Lending via the blockchain is pretty disruptive because you do not need a central party anymore. It can changes a lot of things and speed things up. But, we also see a lot of risk for cryptocurrency based lending platforms. The integration of trust and a security that somebody is able to pay their loan back is very imporant. With normal loans there is also some kind of security if you can not pay your loans, ETHLend did not show us how they are going to do that.
Part C: TEAM AND ADVISORY BOARD (50/100)
ETHLend has a pretty big, but unexperienced team. Most of the team members are young, just graduated or still studying at an university. We do not see any big names as advisor as well. We do not say that the team is not capable, but we can also not verify they are capable. Most of the team-members did study on an university but did not have big responsible jobs. Young teams can be outstanding and really surprising but they can also fail because they miss experience.
Part D: COMPETITORS (50/100)
One of the biggest competitors is WeTrust with an experienced team and Vitalik Butterin is an advisor. Besides that, the WeTrust product is looking better developed and more thought out. Thereby WeTrust is more focussing on ''smaller'' lending circles where you have social securities. We think WeTrust will stand out in rolling out a succesful product.
Part E: WHAT IS IN THE CHARTS (60/100)
We saw a lot of price movement over the last week. We can't really see a reason for this. It looks like the project has a support level at around 0,15USD.
Social media: ETHLend has a lot of followers on Facebook and they publish a lot
Search Volume: HIGH