Investing. Not only to achieve the legitimate objective of obtain economic benefits, but also to contribute to the small business and community development in developing countries. That is the great argument that is proposed to us EthicHub. An idea that becomes reality thanks to Blockchain technology.
What is EthicHub?
Ethichub is a Spanish company investments with social impact (known in English as impact investing). Its main objective is to connect investors interested in generating a financial and social return on their capital with agricultural communities in Latin America, especially those dedicated to the cultivation and marketing of coffee.
On its platform you can find numerous projects coffee related in countries like Mexico, Brazil or ColombiaAnyone can invest in them from a minimum amount of 50 euros.
It should be noted that the formula on which EthicHub works is that of crowdlendingThis is based on the concept of direct contact between borrowers and lenders. It is they who agree on the terms under which the money is lent, which will subsequently be recovered based on previously agreed interest rates.
What potential investors really want to know is this: in the few years that EthicHub has been operating, more than 300 projects have already been successfully completed, with a very low default rate (less than 3%) and with profitability rates of around 8% or even more. Sounds interesting, right?
Blockchain: the technology that makes everything possible
The formula devised by EthicHub aims to solve a problem that affects millions of people in developing countries: the inability to access creditSmall producers are unable to run their businesses or sustain their way of life due to lack of financial resources.
This is where Blockchain technology comes in, which It allows the free circulation of money without the involvement of traditional intermediaries. (banks, credit institutions, etc.). In this way, management costs are reduced to a minimum.
EthicHub is firmly committed to this disruptive technology that can change the world. With it, it is possible to make transfers over the Internet in a fast, transparent and secure way. Applied to the crowdlending formula, this enables great advances in the field of financial inclusion. It is not just an empty declaration of good intentions: EthicHub has proven that its system delivers results.
How to invest in EthicHub
There are Two forms of investment in EthicHub's social impact projects. Basically, it is about the classic option and the new way that the world of crypto investments offers us:
- direct investment, through the mechanisms explained on its website and with the classic figures of capital and performance.
- Indirect investment, by purchasing the Ethix token, specifically designed by the platform to ensure investment protection.
For the peace of mind of investors, EthicHub offers a double protection system: On the one hand, a small percentage of the initial investment goes to a compensation fund to be used in case of default; in parallel, it is possible to invest the Ethix to guarantee (staking) the cooperatives directly and obtain rewards for supporting the loans.
About EthicHub Projects
Currently, almost all EthicHub projects in which we can invest are focused on the development of coffee-growing regions in Latin American countries such as Brazil, Colombia, Honduras or Mexico. The funding is destined for the following: agricultural cooperatives and small family businesses, which need these investments to develop their activity and market their product: coffee.
It should be noted that the impact of these investments goes beyond the mere economic sphere, which in principle is the main driving force behind everything. In addition to that, the fact that these businesses remain active also means the possibility of ensuring a decent way of life for many people.
Conclusion
The most notable aspect of EthicHub is its positive impact nature, which it pursues more than laudable objectives: mutual benefit and a fair distribution of wealthHowever, that does not affect the solidity of its investment model.
From the investor's point of view, the attractions are unquestionable: a profitability that is above the average of the ethical crowdlending sector, together with a moderate risk, thanks to the implementation of a compensation fund for cases of non-payment (really rare) based on the Ethix token.
All in all, this investment model is a different proposition with many interesting aspects.