What is Bitcoin’s price trajectory amid the banking crisis? You can now become your own bank with the Collateral Network (COLT) Web3 Challenger Lender

by James · April 17, 2023

Bitcoin

As the world grapples with the Silicon Bank crisis, many are turning to cryptocurrencies like Bitcoin (BTC) to protect their assets in uncertain times. In the midst of this, Collateral Network (COLT) is emerging as a new challenger lender in the Web3 space, providing a unique solution for people looking to take out loans on their assets.

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Become your own bank with security network (COLT)

Collateral Network (COLT) enables users to become their own bank. The platform allows peer-to-peer lending and borrowing without intermediaries such as banks or financial institutions. This is achieved through smart contracts, which provide a decentralized environment where borrowers can provide collateral for their physical assets, something banks tend to avoid.

With the Collateral Network (COLT), users can post collateral for items such as vintage cars, gold, art, real estate, watches, collectibles and more. These loans can be used for any purpose, such as buying a house or starting a business, giving more control over their finances and eliminating the need for traditional banking services.

The Collateral Network (COLT) issues an NFT backed by the borrower’s tangible asset at a ratio of 1:1, which is then fractionated and sold to the COLT community at a predetermined interest rate. This approach allows borrowers to access multiple lenders rather than relying on a single one. This also minimizes risk as those intending to lend their crypto can diversify into more supported NFTs.

In case of loan default, the Collateral Network (COLT) provides a unique solution. The platform lists the authenticated asset on its private auction, available only to Collateral Network (COLT) token holders. On top of that, Collateral Network (COLT) holders get a number of benefits, such as lower platform fees, staking incentives and access to VIP groups.

Collateral Network (COLT) is in its first pre-sale phase, which means the token is being sold at the lowest price it will ever be. Currently, COLT is valued at $0.014and investors predict it may soon reach $0.35 when the pre-sale is over.

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Banking crisis and Bitcoin’s price trajectory: What can we expect?

Bitcoin (BTC) has risen over the past month from $19,955 to over $28,000, despite the collapse of Silicon Valley Bank, which has caused a domino effect of others going bankrupt. This is mainly due to people wanting to withdraw their funds and the banks not being able to provide liquidity. As a result, this has led many to seek out alternative forms of investment and store value, such as Bitcoin (BTC), which has seen an increase in demand following the banking crisis.

However, the banking crisis has strengthened the confidence of investors, who see digital currency, such as Bitcoin (BTC), as an alternative to the traditional banking system. Bitcoin (BTC) has maintained its dominance and is on track to potentially breach the $30,000 resistance level.

While the recent Bitcoin (BTC) rally has been impressive, it is not uncommon for Bitcoin (BTC) to experience significant price swings in a short period of time. As a result, we may see Bitcoin (BTC) correct in the near future once the dust settles from this banking crisis.