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  • Mon, May 14, 2018 Japan's Internet giant GMO launches cryptocurrency loan services including BCH, ETH, LTC and XRP

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    GMO Networks' cryptocurrency exchange added four cryptocurrencies to the loan program, allowing customers to lend their cryptocurrencies to the company. In the beginning, the plan only supported BTC and now it has joined BCH, ETH, LTC and XRP.

    GMO Coin, the cryptocurrency exchange under Japan's Internet giant GMO, announced this new loan service this week, claiming to “allow you to lend your virtual currency to the company and collect the rent based on the loan amount.” Exchange customer It can lend 100 to 1000 ETH; 50 and 500 BCH; 300 and 3000 LTC; and 100,000 and 1,000,000 XRP. The expiration time is 150 days. The borrowed cryptocurrency will be returned to the customer in the same quantity and type when it expires. With regard to the method for calculating borrowing interest, the exchange will borrow 2.04109589 ETH customers for every 100 ETHs. For 50 BCH, the company will pay 1.02054794 BCH. For 300 LTC, the customer will receive 6.12328767 LTC. Finally, for 100,000 XRP, the cost due to the customer will be 2,041.0958 XRP. GMO explained that the cost is “equivalent to 5%/year (including tax)” and added that it will also impose a tax on the loan fee.

    The traditional business of GMO Networks is domain name registration and web hosting. It also participates in the development of cryptocurrency. In the second half of last year, the company announced that it would invest US$320 million in bitcoin mining and other businesses. Recently, the company disclosed GMO Coin's financial data, showing that operating losses reached 760 million yen (approximately US$7 million) in the first quarter of this year, while companies operating cryptocurrency business added approximately 560 million yen (approximately 510 million yen) to the company. Million dollars). At the same time, the company disclosed that mining operations have produced 906 bitcoins and 537 bitcoin cash.