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Topic: 2 Bitcoin Secured Loan: At Bitlendingclub.com (Collateral Already Escrowed) (Read 1291 times)

legendary
Activity: 1736
Merit: 1029
Domain names are worth about $0.25 (what malware distributors would pay for any random domain) until someone is interested in purchasing it for a given price, and has the capacity to purchase the domain for their offer.

Valuations value how much a domain is worth if someone is interested in purchasing it, and has the capacity to purchase it.

While it is plausible that the domains will be sold for, say $200 each, they are not easily liquidate. Seriously, nobody will buy them for even $10 in an auction. It is only when someone has an interest in that domain, then it would be possible to liquidate the domain for anywhere near any valuations.

I recommend cancelling the collateral status of the loan, or more appropriately value the domain names. I recommend a valuation price of $20 per domain, and I believe that is stretching it.
I'll lower the valuation to $20 per domain. Masterful did offer about 77 more domains, so at about $20 each, that should be about $1,450 maximum collateral. The reason I valued those two domains to about 1/3 of their appraisal value is because they're really popular keywords in the financial world, which makes them a little easier to sell/liquidate.

you would "suppose".  Good luck trying to sell 2 useless domains if the lendee defaults.  I'd suggest you stay away from domain names unless you have a confirmed offer/value upfront.
hero member
Activity: 574
Merit: 500
Some "collateral".   Roll Eyes

Quote
Confirmed! Collateral has been transferred. The domains transferred are: brentoilspot.com and oilspotprice.com; the average valuation for both is $2,559.50 (based on 5 domain valuation sites).




The loan is for approximately 1/3 the value of the collateral I put up. The Bitlendingclub.com CEO assessed whether my proposed collateral was liquid enough to compensate investors in case of default.

The bitlendingclub CEO is obviously not that smart.  oilspotprice.net is available for $10.  So is brentoilspot.net.   Tell me why someone would shell out thousands of dollars for a worthless .com?

lolz the "values" of these websites are quite false when judged by other "domain valuation sites".  I owned a domain that was apparently worth over $250,000 USD +.

What was it? Did you sell it? Shocked
hero member
Activity: 1029
Merit: 712
Who carries the risk if BitLendingClub cannot liquidate the collateral at the estimated value?  BLC or the lender?

The lender.  BLC is not investing their own money into any loans.

IMO, BLC is participating in the scam by making the user believe the loan is secured, when it is not.   Undecided

That is ridiculous, if BLC are valuing the escrow then they should be standing behind that valuation.
We are standing behind the valuation. With that said, the feedback has been consistently unanimous that the collateral provided is not substantial, therefore the loan will not be funded on our system unless the borrower provides more collateral.

In which case I withdraw my comment.
full member
Activity: 378
Merit: 101

Thank you for addressing our concerns. 

It's my pleasure. Bitcoin lending is relatively uncharted territory, so we're always working to get the best result and improve our processes. The community's feedback has been instrumental in that regard.
Vod
legendary
Activity: 3668
Merit: 3010
Licking my boob since 1970
The lender.  BLC is not investing their own money into any loans.
To be fair, we do invest in some of the loans, but not in this particular one. We generally try to minimize our involvement, but we may periodically invest in the loans of borrowers who we think are "underrated." In other words, the borrower has completed the verification process, but they're having a hard time finding investors.

IMO, BLC is participating in the scam by making the user believe the loan is secured, when it is not.   Undecided
I think we've been pretty clear that we won't allow the loan to stand as such, given the unanimous feedback we've received. Furthermore, our original estimation is that we will not be able to liquidate the domains for more than 1/3 of the price. Given the feedback, we've determined that that's also highly unlikely, but we were willing to cover the losses in case of a default. The loan has now been removed and we'll ask for more collateral if the borrower needs another loan.

Thank you for addressing our concerns. 

full member
Activity: 378
Merit: 101
The lender.  BLC is not investing their own money into any loans.
To be fair, we do invest in some of the loans, but not in this particular one. We generally try to minimize our involvement, but we may periodically invest in the loans of borrowers who we think are "underrated." In other words, the borrower has completed the verification process, but they're having a hard time finding investors.

IMO, BLC is participating in the scam by making the user believe the loan is secured, when it is not.   Undecided
I think we've been pretty clear that we won't allow the loan to stand as such, given the unanimous feedback we've received. Furthermore, our original estimation is that we will not be able to liquidate the domains for more than 1/3 of the price. Given the feedback, we've determined that that's also highly unlikely, but we were willing to cover the losses in case of a default. The loan has now been removed and we'll ask for more collateral if the borrower needs another loan.
full member
Activity: 378
Merit: 101
Who carries the risk if BitLendingClub cannot liquidate the collateral at the estimated value?  BLC or the lender?

The lender.  BLC is not investing their own money into any loans.

IMO, BLC is participating in the scam by making the user believe the loan is secured, when it is not.   Undecided

That is ridiculous, if BLC are valuing the escrow then they should be standing behind that valuation.
We are standing behind the valuation. With that said, the feedback has been consistently unanimous that the collateral provided is not substantial, therefore the loan will not be funded on our system unless the borrower provides more collateral.
full member
Activity: 378
Merit: 101
Who carries the risk if BitLendingClub cannot liquidate the collateral at the estimated value?  BLC or the lender?
In this case we've taken the responsibility of holding the collateral, so we're therefore responsible for covering the lender's losses in case of a default. However, based on the feedback we've received, it looks like we'll have to ask for additional collateral from the borrower or the borrower will have to reduce the amount they want to borrow. If the borrower does not provide more collateral, then it won't be funded on our system.
hero member
Activity: 1029
Merit: 712
Who carries the risk if BitLendingClub cannot liquidate the collateral at the estimated value?  BLC or the lender?

The lender.  BLC is not investing their own money into any loans.

IMO, BLC is participating in the scam by making the user believe the loan is secured, when it is not.   Undecided

That is ridiculous, if BLC are valuing the escrow then they should be standing behind that valuation.
Vod
legendary
Activity: 3668
Merit: 3010
Licking my boob since 1970
Who carries the risk if BitLendingClub cannot liquidate the collateral at the estimated value?  BLC or the lender?

The lender.  BLC is not investing their own money into any loans.

IMO, BLC is participating in the scam by making the user believe the loan is secured, when it is not.   Undecided
hero member
Activity: 1029
Merit: 712
Who carries the risk if BitLendingClub cannot liquidate the collateral at the estimated value?  BLC or the lender?
full member
Activity: 378
Merit: 101
Domain names are worth about $0.25 (what malware distributors would pay for any random domain) until someone is interested in purchasing it for a given price, and has the capacity to purchase the domain for their offer.

Valuations value how much a domain is worth if someone is interested in purchasing it, and has the capacity to purchase it.

While it is plausible that the domains will be sold for, say $200 each, they are not easily liquidate. Seriously, nobody will buy them for even $10 in an auction. It is only when someone has an interest in that domain, then it would be possible to liquidate the domain for anywhere near any valuations.

I recommend cancelling the collateral status of the loan, or more appropriately value the domain names. I recommend a valuation price of $20 per domain, and I believe that is stretching it.
I'll lower the valuation to $20 per domain. Masterful did offer about 77 more domains, so at about $20 each, that should be about $1,450 maximum collateral. The reason I valued those two domains to about 1/3 of their appraisal value is because they're really popular keywords in the financial world, which makes them a little easier to sell/liquidate.
full member
Activity: 182
Merit: 100
Well if you default BitLendingClub is going to find it difficult to find someone willing to buy those domains for the same value as your loan. He has either grossly misjudged the value or doesn't understand what good collateral constitutes. I'm actually very surprised he would be willing to take those at that value.
Please note that my assumption is that the website will fetch no more than 1/3 of the valuation price. This is the first time I take domain names as collateral, but I'm assuming that liquidation will occur at a substantial discount. I'm not sure if 1/3 is overpriced, but if the community feels that it is, then the collateral ratio will be respectively lowered.

Again, I'm not an expert at this, I'm just trying to provide a solution which works for everybody. Your opinion is greatly valued.
Best Regards,
Kiril Gantchev
CEO of BitLendingClub
Domain names are worth about $0.25 (what malware distributors would pay for any random domain) until someone is interested in purchasing it for a given price, and has the capacity to purchase the domain for their offer.

Valuations value how much a domain is worth if someone is interested in purchasing it, and has the capacity to purchase it.

While it is plausible that the domains will be sold for, say $200 each, they are not easily liquidate. Seriously, nobody will buy them for even $10 in an auction. It is only when someone has an interest in that domain, then it would be possible to liquidate the domain for anywhere near any valuations.

I recommend cancelling the collateral status of the loan, or more appropriately value the domain names. I recommend a valuation price of $20 per domain, and I believe that is stretching it.
full member
Activity: 378
Merit: 101
Well if you default BitLendingClub is going to find it difficult to find someone willing to buy those domains for the same value as your loan. He has either grossly misjudged the value or doesn't understand what good collateral constitutes. I'm actually very surprised he would be willing to take those at that value.
Please note that my assumption is that the website will fetch no more than 1/3 of the valuation price. This is the first time I take domain names as collateral, but I'm assuming that liquidation will occur at a substantial discount. I'm not sure if 1/3 is overpriced, but if the community feels that it is, then the collateral ratio will be respectively lowered.

Again, I'm not an expert at this, I'm just trying to provide a solution which works for everybody. Your opinion is greatly valued.
Best Regards,
Kiril Gantchev
CEO of BitLendingClub
hero member
Activity: 742
Merit: 502
Circa 2010
Well if you default BitLendingClub is going to find it difficult to find someone willing to buy those domains for the same value as your loan. He has either grossly misjudged the value or doesn't understand what good collateral constitutes. I'm actually very surprised he would be willing to take those at that value.
sr. member
Activity: 280
Merit: 250
Hehe.. so you are basing your collateral price in a valuation site.. but the reality is that try to find someone who even gives you .5 btc for each and will be hard

Ha ha... a valuation for a domain name is basically an overpriced opinion Smiley
sr. member
Activity: 371
Merit: 250
Hehe.. so you are basing your collateral price in a valuation site.. but the reality is that try to find someone who even gives you .5 btc for each and will be hard
legendary
Activity: 1736
Merit: 1029
I don't understand why its being posted here. The loan is being pooled in by "investors" in the bitlendingclub website. So why is he asking for the loan here?

bitlendingclub is a very new website with little reputation, and a very small userbase.  Most loans there don't get filled at all, only one or two have a couple of investors.

sr. member
Activity: 280
Merit: 250
I don't understand why its being posted here. The loan is being pooled in by "investors" in the bitlendingclub website. So why is he asking for the loan here?
sr. member
Activity: 602
Merit: 250
HEX: Longer pays better
I tend to agree this is nonsense, I own hundreds of domains and I will offer $10 each right now for them, and I think that is perhaps because I have had one too many glasses of Rioja this evening.

No I think this is a set up following on from the thread about the Bit Lending Club.

And in my lowly opinion I think anyone that deals with either you or the above mentioned name is mental !

My opinion of coarse but hey ho there it is.....

Cheers
Mark
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