It sounds so easy when you’re told that you can get loan and even interest with your digital currency. It actually makes sense to store your coins and get up to 9 percent interest on them. This is what Bank of Hodlers claim to do. Nevertheless, when your funds are involved, it makes sense to read the tiny prints and also read in-between the lines. This is the essence of this review.
It is very easy to get carried away with promises of profit as seen with many investment sites on the internet. This has become even more pronounced with the advent of digital currencies such as Bitcoin. This is not surprising since the anonymity of the holder could be enhanced with tools such as mixers. Sending your crypto assets to random sites because they promise some incentives is not advisable.
Many investors have lost thousands of dollars because they believed they could make quick profit from such sites. Are you about doing the same with Bank of Hodlers?
How Bank of Hodlers Works
This site claims that it would pay investors 9% of their funds if they keep their digital currencies with the company. Such investors would also access loans apparently using their assets as collaterals. This is just like a conventional bank and should work well if this is a reputable company. However that is the main issue here. Is Bank of Hodlers a reliable site?
According to the site, what the investor needs to benefit from the services is creating a wallet and funding it. Such investors start earning interest and could take loan. According to the owners:
“We are creating a customer-first bank leveraging blockchain. We intend to treat your cryptocurrencies as a separate asset class and offer services that ensure technologies based on the blockchain are usable as of today.
With our asset-backed lending platform, you can earn up to 9% interest per annum on your deposited cryptocurrencies which will be credited to you weekly. As of now, we support Bitcoin (BTC), Ethereum (ETH), TrueUSD (TUSD) and DAI”
Another update from the group’s Telegram channel states that other coins are supported. These are XRP, XLM, USDT, USDC, PAX and BAT.
We conducted a background check to determine if this is a site that you should deal with and here are some of the things you have to know.
Who Owns of Bank of Hodlers?
According to the administrator of the project’s Telegram channel, Bank of Hodlers is owned by the team and a few investors. They claim to have raised a seed round via a convertible note. So 100% of the equity at the moment is owned by the team.
We checked the team and they seem professional enough. However in the quest to know the details of the operation we found out that these are employed full-time according to our source. Nevertheless there is one problem with BOH.
Portions of the BOH website was plagiarized from other sources. Now this is not what you should take for granted. Every professional team knows not to copy content from others without attribution. In our opinion, this makes Bank of Hodlers an unreliable investment site.
When content from a site is culled from other sources without making proper reference to them, the plagiarist’s intention is almost always to pass on other people’s intellectual property as theirs.
You can see that most of the “culture” section of the site is not just a copy of other sites, the owner clearly clogged it with irrelevancies in a bid to sound as if they have a lot to say. Why would you trust a company like that with your funds?
The crux of the Bank of Hodler’s issue is that there is no way to know that the owners are honest business people and professionals who would keep to their promises of keeping your assets safe and paying the interest they promised. How are you sure that you would get your funds back after sending them to the company? You have no way of knowing.
In our experience, if a company that wants your funds has issues bordering on integrity, it is very risky to trust them with your assets. We asked to know if there are people that have actually made deposits and withdrawal and those that have gotten loans. The admin said:
Is BOH a scam? We are not sure, but when funds are involved, it is safer not to take chances. You could easily lose your money. Remember that fraudsters have no compunction in stealing your funds even if it’s all the savings that you have. This is why we advise that you only send funds to reputable investment sites.
The one that we recommend would help you grow your assets through a social investment scheme. You practically get the same result as professional traders and investors by copying their trades. This is accomplished irrespective of your investment level and skill, without doing anything yourself. If you’re interested in our top recommendation, sign up here.
What is your experience with Bank of Hodlers? Please let us know through the comment box below.