Will Cryptocurrencies Ambitions Strengthen Ieg Holdings Corp (OTCMKTS:IEGH)?

After months of consolidation, Ieg Holdings Corp (OTCMKTS:IEGH) appears to have found its groove, if a recent spike in its share price is anything to go by. The stock has risen to levels last seen in August of last year as investors’ confidence on the company’s growth prospects continues to grow.Renewed investor interest in the stock has to do with the announcement that the company is in the process of pursuing growth opportunities in the blockchain space. In recent trading sessions, Ieg Holdings has risen to the $0.84 handle, a move that is already arousing suggestions that a selloff of the stock has come to an end.In 2017, IEG Holdings has felt the full wrath of short sellers, seen by the stock losing more than 90% in market value. However, over the past one month, the stock has risen by more than 80% and is currently up by more than 30% for the New Year. IEGH Daily ChartThe stock has also pulled back from this year’s highs of $0.84 and is currently trading at the $0.41 handle. As it stands, we believe the stock is on the cusp of trading higher, despite the recent pullback.Before we look at what is likely to push the stock higher, let us first look at what IEG Holdings does in its pursuit of shareholders returns. IEG Holdings Business Overview IEG Holdings bills itself as a consumer finance company, engaged in the business of providing unsecured consumer loans. The company operates a Consumer Loans segment that offers loans of between $5,000, and $10,000. It also offers loans online under the Mr. Amazing Loans brand.Concerned by the fact that the consumer finance business might not be producing sufficient returns and shareholder value, IEG Holdings is planning to tweak its core business a little bit. The company has set its eye on the blockchain technology, which it believes will accelerate its next phase of growth.IEG Holdings AmbitionsIEG holdings is the latest company to receive a significant boost on Wall Street on reiterating plans to venture into the cryptocurrencies space. Through its wholly-owned subsidiary, Investment Evolution Crypto LLC, the company plans to create its cryptocurrency backed by Gold metal. The long-term plan is to offer loans and accept loan repayments from its other segment through the crypto/blockchain currency.

“IEGH's cryptocurrency is planned to be backed by gold metal and registered with the SEC as a security. We believe potentially combining the exciting new blockchain technology with the hard asset of gold metal, expected SEC registration, a leading sophisticated online consumer finance system and individual US state lending licenses is a very exciting proposition,” said CEO Paul Mathieson.

Cryptocurrencies are fast becoming popular and acceptable means of settling transactions. Given the growing adoption and acceptance of the currency, IEG Holdings believes it can be able to bolster its core lending business with its gold-backed cryptocurrencyIt awaits to be seen if a launch of a gold-backed cryptocurrency will help accelerate growth in the company’s lending business which happens to be on a roll. According to the latest update, IEG Holdings provided $960, 000, in new consumer loans from October to December 2017. This represented a 12.3% increase over loans supplied between July to September. The cumulative amount of loan issued has increased by 192% since January 2015. Lending Club Tender Offer IEG Holdings has commenced a tender offer for shares of Lending club in a deal that is set to expire on February 22, 2018. Under the terms of the agreement, the company is to offer 13 shares of its common stock, for each legally tendered share in Lending Club up to an aggregate of 20.7 million shares of Lending stock.IEG Holdings plans to acquire 4.99% of Lending Club’s outstanding shares by pressuring the firm to convert them into a balance sheet lender. The company could also liquidate Lending Club’s shares in a similar manner to the OneMain Holdings transaction last year.The management believes that changing Lending Club’s business model to a balance sheet lender model could enable the company generates higher gross margins going forward. The deal should also provide long duration cash flow from customers thus build increased customer goodwill Bottom LineIEG Holdings is the latest company that is trying to explore ways of integrating blockchain technology into its existing business. Prospects for growth in the space are enormous, given the ever-growing applications of the emerging technology.Any company that gets a head start on the utilization of the technology is sure to enjoy significant returns as blockchain applications find their way into the mainstream industry. Renewed investor interest in the stock given the trading volume is an indication that investors believe the company could generate significant shareholder value with its proposed Gold backed Cryptocurrency.We will be updating our subscribers as soon as we know more. For the latest updates on IEGH, sign up below!Disclosure: We have no position in IEGH and have not been compensated for this article.