Aave LEND is a cryptocurrency that is in its preliminary stages of development. It was initially created as a lending market for individuals in developing countries like India, Nigeria and the Philippines. However, with this development it has now become a crowdfunding platform. The concept of Aave LEND is that the currency does not need to be produced or created by the company and all participants need to use their own hard-earned money to fund their project. They use Aave LEND to purchase the crypto asset’s raw material, give their person as collateral and then sell the asset for Aave LEND.
In most cases, the collateral can be used to fund a portion of the initial purchase. This way, the issuer will have more capital to work with. The advantage is that since the people in the buying team will be using their own capital, the risk of losses will be less. This does not mean that the team is being “used” as collateral, just that they can be used to offset costs when purchasing the project. The investors and the users have their own “equity”. These include the ICO investors and Aave LEND purchasers.
As always, specific regulations apply to every country and it may be best to check the rules of a particular country prior to participating in an ICO. This would be especially true if it is a large scale international project with other countries involved. Therefore, it is best to consult your local experts. Aave LEND is available for direct purchase or you can also use Aave LEND tokens to participate in the ICO.