Ethichub is a positive impact platform focused on financing coffee-producing agricultural communities in Mexico that offers us lending operations with a great return from just 20 euros per project.
In this review we share all our opinions about the platform as users of it… Don’t miss it!
Ethichub Reviews – Critical Performance Parameters
PROFITABILITY: Ethichub offers a return per operation of 8%, which is undoubtedly in the upper range of the average for the ethical crowdlending sector and positive impact investments.
RISK: Despite the maxim that there is risk in every investment, Ethichub’s business model granting solidarity loans to groups of dozens of farming families, added to the monitoring and evaluation of each operation through the local node and added to the negotiation by the platform of the coffee purchase contracts allows, in our opinion, to greatly moderate the inherent risk of the loan. In addition, since December 2020, a compensation fund has been implemented to compensate investors in the event of non-payment.
TRUST: Ethichub, trademark of Lendingdev SL, with CIF B87954038 is a legally registered trademark in. It features a solid management team, led by its CEO, Jori Armbruster , with extensive experience in the platform’s operating sector.
DIVERSIFICATION: Despite concentrating the vast majority of its projects in the same type of asset and country, the truth is that Ethichub publishes a reasonable number of opportunities per month to facilitate internal diversification. On the other hand, its unique and differential character will provide an extra diversification to our global portfolio.
LIQUIDITY: Ethichub does not have secondary market mechanisms or direct sales to the platform. The average duration of published trades is about 12 months.
Ethichub What it is and How it Works – P2P Lending
Ethichub is an impact investing company that puts investors interested in generating financial and social returns on their capital in contact with agricultural communities in Latin American countries (mainly Mexican coffee growers) who are seeking financing.
The investment is structured through projects in which you can invest from just 20 euros per operation by credit card or DAI (a cryptocurrency with a practically constant value equivalent to approximately one dollar, until 2019 ETH Ethereum was used as a base cryptoactive of the platform).
The platform has accumulated 300 projects in almost three years of operation with a 99% repayment rate. They can register and invest in the projects citizens of any nationality except the USA, China, Canada and Mexico.
Ethichub Review – Features
From the point of view of benefits and performance, Ethichub offers loans at 8% in XDai, a cryptocurrency that keeps parity with the US Dollar.
The average duration of the operations is about 12 months, and although they do not have Buyback, they do have additional guarantees to ensure their collection, such as the pre-negotiation of the sale of the harvest financed by Ethichub with the local coffee companies, the feasibility analysis of the project by the local link or node.
Opinion Ethichub Crowdlending Review
Advantages of Ethichub – Strengths
➊ Positive impact platform, which pursues mutual benefit and a fair distribution of wealth.
➋ Attractive returns per trade, currently 8%, above the impact investing sector
➌ Solid business model with a 99% repayment rate in almost 3 years of operations.
➍ Interesting exclusive cashback promotion to test the platform.
5. They have a compensation fund that is activated to compensate investors in case of non-payments (Ethix token)
Weaknesses and aspects to improve
➊ Exposure to risks inherent to operations, such as currency risk, country risk, etc.
➋ Some aspects of the interface and the wallet need to be polished in order to have a simpler, more rewarding and direct investment experience.
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