CoinRabbit Review

Crypto enthusiasts who want to take decentralized finance to a new level, may be excited to learn about CoinRabbit.

CoinRabbit is a peer-to-peer lending platform that facilitates loans between investors and borrowers. Borrowers can use the loans for any form of spending, including further crypto investing.

But borrowers must be wary that their loans could be called. And investors need to be careful because they could forfeit their funds. Whether you’re a borrower or a saver, here’s what you need to know about CoinRabbit.

CoinRabbit logo
  • Earn up to 10% yield when lending stable coins
  • Borrow stable coins using crypto as collateral
  • Short sell tokens using “bear market loans”

Lenders/Investors: 10% APY

Borrowers: 14% APR

Non, but interest is forfeited if deposited assets are withdrawn within three months

What Is CoinRabbit?

CoinRabbit is a cryptocurrency lending platform that facilitates peer-to-peer (P2P) loans. The company, founded in 2020, wants to make cryptocurrency work like a traditional currency for holders and lenders. 

With this in mind, CoinRabbit is working to create a platform where lenders can earn interest without the risk of losing their assets and borrowers can take out loans without fear of losing their underlying collateral.

The company partners with ChangeNow.io for exchange services and Guarda.com for asset protection services. However, the “meat and potatoes” of the P2P forum is CoinRabbit’s platform.

What Does It Offer?

CoinRabbit offers a P2P lending platform for crypto and stable coin owners. It facilitates both sides of the transaction and allows borrowers to take out both Bull and Bear Market loans. These are a few of the more unique features.

Bull Market Loans

With bull market loans, borrowers use crypto as collateral to borrow stable coins (such as USDC or USDT). These loans have unlimited holding periods.

The interest rate on bull market loans is 14% APR and it accumulates monthly. All interest must be paid before collateral is returned.

Note that if the token used for collateral falls by 45% relative to the borrowed token, the loan will be called and collateral will be liquidated. CoinRabbit says that it will notify you by SMS and email if your loans reaches any of three limits zones so that you can add collateral to avoid liquidation.

Screenshot of CoinRabbit's crypto loan calculator

Bear Market Loans

Bear market loans allow users to “short sell” tokens when they expect the value of a token to go down. With a bear market loan, borrowers use one crypto token (including stable coins) and receive an alternative token. 

If the value of the token used as collateral goes down, the borrower can sell the alternative token and buy the original token. Then the borrower can repay the original loan and pocket the difference as profit.

Interest Accounts

CoinRabbit has interest accounts that earn a 10% annual yield at this time. The minimum deposit on these accounts is $100 and there is a $100,000 maximum deposit. 

Savers can instantly withdraw their savings from CoinRabbit, but there is a catch. Anyone who withdraws funds before holding for three months forfeits their interest earnings.

Are There Any Fees?

CoinRabbit boasts about not having fees, but this isn’t entirely true. Borrowers who take out loans for less than 30 days will pay a $100 (or equivalent token) fee for each loan.

It also appears that CoinRabbit might take a cut of a loan’s profits. While borrowers pay 14% APR on all loans, investors are only promised a 10% yield on their coins. That leaves a 4% gap which we can only assume that CoinRabbit take a portion of.

CoinRabbit says that it never charges withdrawal fees. But it should be noted that its terms and conditions page says that if investors withdraw their funds in less than three months, they’ll not only forfeit their accrued interest, but they’ll “pay all the network fees for the withdrawal.”

How Does CoinRabbit Compare?

CoinRabbit’s interest rates are solid if you’re looking to lend assets. Investors will only see a few crypto interest accounts that offer higher yields than CoinRabbit. 

However, CoinRabbit’s advertising policies raise red flags. For example, the company markets itself as “Fee-Free and Transparent,” but borrowers pay fees on loans kept less than 30 days and lenders must pay the network fees on assets that are withdrawn within three months.

The company is also less than upfront about the terms of loans. If the collateral falls in value by 45%, the loan will be called. This isn’t explained in CoinRabbit’s marketing materials and the process isn’t clearly outlined in the terms and conditions either.

At this time, CoinRabbit doesn’t have the maturity of more established crypto lending platforms like BlockFi or Celsius Network. Here’s a closer look at how it compares.

Header

CoinRabbit logo
BlockFi logo
Celsius Network Logo (new)

Starting at 1%
(0% in California)

None, but interest is forfeited if deposited assets are withdrawn within three months

Cell

How Do I Open An Account?

Loans and interest accounts can be opened on the CoinRabbit website within minutes. CoinRabbit’s account authentication process is sparse. Rather than a traditional account (where users follow Know Your Customer laws), users only need a phone number and a crypto address to open their accounts. 

Is It Safe And Secure?

CoinRabbit has not had any notable breaches. And assets used for collateral are kept in cold storage with several Guarda wallets. The company also allows instant withdrawals which should put minds to rest.

However, while CoinRabbit says that “Your funds are protected and insured,” it doesn’t explicitly explain how. It’s also uncomfortably vague about its security practices. While it relies heavily on its partnerships, the company must pass information over APIs to its partners. If these transmissions are not encrypted in transit, private keys are at risk.

But aside from a vague reference to “secure APIs that need to be accessed via a virtual private network,” the security details are scant. The terms and conditions don’t specify insurance policies nor do they require CoinRabbit to store assets with a specific secure third party. Also, CoinRabbit advertises that it does not do KYC which could cause them to run into issues with U.S. regulators down the road.

Finally, it’s worth mentioning that using any crypto lending platform involves taking on some inherent risk since borrowers and savers must turn their private keys over to a third party. As soon as crypto keys are transferred away from you, they become another entity’s property. And there’s no way to guarantee they won’t be stolen.

Screenshot from CoinRabbit showing that they don't do KYC

How Do I Contact CoinRabbit?

Details on contacting CoinRabbit are scant. The company has a Chat Now feature on the bottom right-hand side of the website. Users can also contact customer service through [email protected]

Information about headquarters locations and phone numbers is not published on the website. The terms and conditions do not even specify the company’s headquartered jurisdiction.

Is It Worth It?

At this time, crypto enthusiasts may want to pass on CoinRabbit. It has good products with strong interest rates. But we’d like to see it publish more concrete details about its terms and policies. 

As of writing, the CoinRabbit website doesn’t even have a Help Center with FAQs. There simply isn’t much too explore beyond its homepage if you’re wanting to dig deeper into the ins and outs of how the platform works.

For now, it might make more sense to use a more established crypto lending platform that offers greater transparency regarding asset insurance, fees and processes. In time, CoinRabbit may become an excellent crypto lending platform. However, it seems a bit risky to use today.

Check out CoinRabbit here >>

CoinRabbit Features

Cryptocurrency interest accounts and loans

Varies by currency, as low as $100

APY For Lenders/Investors

There appears to be no origination fee

Within 30 days: $100

After 30 days: $0

None, but if assets are withdrawn within three months, owners are responsible to pay the network fees for the withdrawal

None, but interest is forfeited if deposited assets are withdrawn within three months




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