What is Agricoin Masternode?

AGCMN is a cryptocurrency based peer-to-peer lending specialized in agricultural related business from farming process, distribution, up to marketplaces. The purpose is to cater the need of direct connection between a group of lenders in one hand as a peer and a group of borrowers in the other hand as another peer into designated projects. The first lending pilot project will be commenced on Q4 of 2018 and gradually grow into a full-scale by 2019.

WHAT IS AGCFUND?

AGCFUND is a cryptocurrency based peer-to-peer lending platform specialized in agricultural related business from farming process, distribution, up to marketplaces. The campaign of AGCMN fund is fully supported by specifically designed cryptocurrency for agricultural ecosystem called Agricoin Masternode (AGCMN). The coin that already running and available in the markets is now fully functional to work as underlying technology for AGCFUND

The way AGCFUND works is completely different than the currently well-known centralized lending mechanism from conventional banking system which is normally inaccessible by most farmers in the third world countries due to its high interest or even difficulties to fulfill the credit requirement and scoring. AGC Fund works more similar to the currently growing peer-to-peer lending platforms that widely available. A group of lenders will fund a farming project that proposed by a farmer as a borrower. The peer-to-peer nature that is decentralized will increase its efficiency by employing cryptocurrency that is decentralized by nature as well. We are promoting an easy, secure, and profitable lending platform to all shareholders and stakeholders.

THE REASON BEHIND CRYPTOCURRENCY BASED PEER-TO-PEER LENDING

The aforementioned obstacles in the current banking credit system is mainly due to its complexity. The system fits better to large corporation borrowers rather than small and medium entities or even personal such as farmers. Highly valuable collateral and comprehensive annual financial report as prerequisite for credit scoring are not things that most farmers familiar with. Even worse, in a third world society, the majority of farmers has no access to banking service at all, not even simply a saving bank account. Therefore, the conventional credit system from commercial bank is not the right answer for agricultural financing problems.

On the other hand, farmers are starting to embrace new advancement namely mobile internet through smartphones. They are easily adopting and adapting new way to communicate and declaring their presence on the network at once. Apps and platforms injected into their phones to monitor the farmer’s market, seed and fertilizers availability, weather forecast, or even more advanced idea such as the Internet of Things.

Borrowing and lending capital has become common practice among them using either chatting or social media platform they are connected into. However, this scheme has limitation as it can reach the farmer’s closed loop or peer only which probably limited in gaining sufficient capital to fund a planting season. Meanwhile, the are huge potential of lenders from different peers who are keen to invest in one or several farming projects. Therefore, AGCFUND is established to cater the need of direct connection between a group of lenders in one hand as a peer and a group of borrowers in the other hand as another peer into designated projects. To complement the credit scoring, each project is equipped with their own risk profile in which investor can freely choose which one is most suitable with their investing style. Interest rate may vary between 5% - 25% depend on the risk carried by each project and the length to run a planting season.

To make it more interesting, AGCFUND promotes cryptocurrency based peer-to-peer lending using Agricoin Masternode (AGCMN), a specifically designed cryptocurrency for farming ecosystem, that is already running and available in the market. There are two characteristics that makes cryptocurrency based peer-to-peer lending is an interesting concept. First, it is decentralized by nature, no central authority to control the coin price and circulation. The ruling parties are not a central bank but a group of computers called miners who validate each coin transaction endlessly

24x7. Second, the coin is deflationary. Unlike fiat money which can be easily printed out of thin air to guarantee liquidity government’s financial needs, which in turn lead the money into inflations, cryptocurrency has a finite amount that is impossible to add. As the demand increase and supply is limited, the price of a cryptocurrency will keep increasing. This will give additional benefit for lenders to expect returns not only from applied interest rates but also from deflationary coin value increase.