Pokket Review: Making High-Interest Crypto Savings More Accessible
Pokket is a simple cryptocurrency savings platform that allows holders of a wide variety of digital assets to turn a safe, reliable return on their holdings.
The platform was designed to help cryptocurrency holders earn interest on their deposits, without requiring them to have an in-depth understanding of the market or even trading experience.
How Does Pokket Work?
Pokket leverages the experience of its founding team, which is comprised of experts that previously worked for financial behemoths including JPMorgan and Citibank, to make crypto investments more accessible.
Like many cryptocurrency investment platforms, Pokket doesn’t provide a huge amount of information about how exactly it manages to generate such substantial returns. However, the website does provide some hints. According to Pokket, the platform uses “advanced financial instruments” to leverage the inherent volatility of crypto markets to offer high interest rates to investors.
Tokens deposited on the platform are lent out to third parties through specialized interest-yielding lending products. These third-parties have passed strict audit and due diligence checks and must put up significant collateral taking on a loan (more on this later).
When we reached out to Pokket to provide specifics on how it calculates its interest rates, a Pokket representative told us that the full details are proprietary. Nonetheless, Pokket uses its proprietary systems to offer what can only be described as an extremely impressive return on investments. Each investment runs for a period of exactly 7 days, after which it matures and the principal (original deposit) is returned, in addition to the interest.
These are offered without any fees whatsoever.
What Does Pokket Offer?
In total, the platforms currently supports 33 different cryptocurrencies, ranging from popular digital assets like Bitcoin (BTC) and Unus Sed Leo (LEO) to less prominent assets like Enjin (ENJ) and Power Ledger (POWR).
After making a fixed deposit in any of these tokens, Pokket will automatically put this capital to work, and will return the investment in addition to any accrued interest after 7 days. The exact amount of interest provided can vary considerably by cryptocurrency, but ranged from as low as 2.6% APR for Unus Sed LEO, to as high as 92.1% APR for Power Ledger deposits (as of writing).
With that said, these interest rates can vary from day to day and are set at 07:00 UTC each morning. According to Pokket, these interest rates are correlated with the volatility of each asset, and have fallen to as low a 0.5% APR for some assets, but have climbed to as high as 450% at times—with an average interest rate of 30% APR.
The way it works is simple. After you have selected your token and created your fixed deposit, your profit will be paid out in two possible ways. If after 7 days, the final price of the asset deposited is less than 110% of the initial price, the interest will be paid in the native token. Otherwise, if it is more, you’ll get 110% of the initial price as True USD (TUSD)—a popular USD pegged stablecoin.
Pokket provides a full overview of your expected return for either scenario right before confirming your fixed deposit, allowing you to decide whether to go ahead or not.
Is Pokket Safe?
As with any investment, there are almost always unforeseen risks and scenarios that could occur that could lead to loss of funds. Fortunately, Pokket implements a variety of safeguards to maximize the safety of investor funds and minimize the risk of incurring a loss.
According to the website, Pokket collateralizes all user deposits with 110% of the amount plus the interest in a stablecoin. This is stored in a cold storage wallet that can be tracked on EtherScan or any other Ethereum block explorer.
Pokket uses a secure multi-authorization approach for its cold storage wallet, and requires that each withdrawal is audited by two different employees before it is processed. Even if every part of Pokket’s infrastructure was compromised, an attacker would still be unable to touch user funds.
Even if Pokket somehow failed as a business, the 110% collateral reserve would be used to ensure all investors are repaid in full—including the interest accumulated during their investment period.
In addition to this, Pokket takes advantage of Amazon Web Services as their hosting provider, and heavily monitors traffic activity to defend anything that might be considered suspicious.
How to Get Started
To get started with Pokket, you need to create an account on the platform by providing your e-mail address and selecting a password.
After your account has been created, you will be able to access your unique deposit address for each supported token via the ‘Token List’ section of the site. You can then use this address to make your deposit, which should appear in your account balance after several network confirmations.
Once your deposit is credited, you will then be free to create a savings plan for the deposited cryptocurrency. This plan will remain in place for 7 days, after which it will be closed and profits will be distributed.
You will then be free to either leave these funds on the platform for reinvestment, or you can withdraw them to an external wallet—there are no withdrawals fees beyond the standard network rate. Pokket currently doesn’t allow customers to cancel their plan early, but this feature may be added at a later date if there is enough demand for it. This service is offered without any KYC requirements.
Final Word
In the last two years, the decentralized finance industry has exploded with innovation and variety, as a huge range of new projects and services hit the market promising better investment returns and improved access to financial infrastructure.
Pokket continues this trend, by bringing to market a platform that offers nearly risk-free returns to investors, while simultaneously eliminating the headache that usually comes with cryptocurrency investments. This is achieved with a simple solution that is accessible to practically anybody—what is there not to like?
Pokket
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Pros
- Easy to get started
- Safe and secure
- Transparent and straight-forward
Cons
- Rather new in the market