Topic: BTCjam - Any Thoughts or Experiances - page 19. (Read 57488 times)

1. Totally get your point here. I am actively working on getting into those loan listings but the one issue is we just need to be tagged (emailed) to be aware of them. There are many listings (live on marketplace - old ones already activated etc). It's hard keeping up with them but definitely agree we can try to get to them in the comments to help that need. I'll start thinking about a way that maybe we can be reached for these scenarios.

2. Technically yes. I'm working to see what we can do in that area with the legal team. There are many liabilities around this especially in the US.

3. I can just find a lot of scenarios where users/investors would be really mad about this..

There are scenarios where random accounts become the biggest funder so that they get the collateral. Now users dont diversify and expose themselves to higher risk (eggs in smaller baskets). Those accounts might be controlled by the borrower.. Now collateral is useless. Collateral is in Russia, you are US based. How are you going to get that collateral? What about the other 400 investors-- what are they going to get out of this? They invested but now they get nothing? How are you going to vet the collateral? What happens if that collateral were to be devalued say in a market situation which crashes? Gold was the collateral and market crashes & the borrower had defaulted -- would that still satisfy you if you had such collateral?

edit: Not trying to be smart here, I'm truthfully just curious about the answers.

1. I understand you can't do all at the same time but I see a severe lack of communication between staff and investors which leads to frustration. Recently some loans received a lot of comments and most are from confused investors not knowing what happened and staff never shows to explain. I guess you'll point me to the support e-mail (which I don't use often because I sense it must be overloaded) but investor keep saying they are not getting answers from staff. More and better communication between staff and lenders would benefit all and if you don't want a forum now at least please comment on the most controversial loans.

2. If borrowers agree to share in order to get a loan would that violate any law?

4. Collateral would have to be sold to the highest bidder. 

After you test us out a bit, drop us a line at [email protected] - We're actively looking for feedback from newer users. Any pains or struggles with the site let us know! Thanks and hope you enjoy our service.

1. We're not that interested in having a forum at this time. Primarily working to develop other features at the moment.

2. Privacy laws.

3. Regarding the update, we do get these things on the backend but we lock numbers for many reasons. Direct link falls under privacy laws as well.

4. Collateral is a lot tougher than you may assume, it's a really tough model. One thing immediately that comes to mind is that some loans might have hundreds of investors. Working that many investors around a piece of collateral is tricky. Also - this model has proven to have success (lendingclub + prosper).. I think we can find ways to strengthen the business and returns without having to move to collateral based loans.

Thanks for sharing these. I'll pass these on the to dev team today. If more come to mind when using that secondary market, drop me a note here if you could please. Thanks again.

I invested some of my coins,  hopefully btcjam wont dissapoint me

And why doesn't btcjam have a forum like this where members can discuss this stuff?

Why no direct link to social media connections?

Why don't you update ebay feedback and create a direct link to ebay?

And why don't you create loans with collateral as an option?

You have a lot of work to do in that note marketplace.

Some suggestions:

1- Reduce the 4% fee. Why do you ven collect a fee on notes? It's not like you are having a lot of work doing this. In fact you have no work and no risk so it makes no sense to collect fees here.

2- When you put a note for sale it should show interest that you'll receive for that investment (yield, APR...) and interest that buyer can collect (right now you put the note for sale and have to navigate to find your note and check interest for buyer)

3- A separate page for your notes with the information on point 2 so you can easily adjust what you want

4- Have an option to automatically create notes with a predefined interest when the loan is activated

These are just some ideas for features that I lack related to the marketplace.

I'll break down shmolas scenario..

More defaults = Less investors.

Less investors = less liquidity for borrowers.

Less liquidity for borrowers = fewer and fewer borrowers (they cant get funding)

Less borrowers = Less fees we get as a business.

Given what you think about fees and how we handle them, this would likely be the outcome. Seems like with that plan we'd actually get less $ in fees. Those fees help with operating costs, an operation like this is pretty expensive in terms of capital. If you think we can align fees differently, we can think about different approaches.

I talk with investors using the platform everyday who are satisfied with the returns and borrowers they are getting an opportunity to fund. Loan volume is really a completely different conversation & it's not something that we care all too much about at the moment. We want to have high quality borrowers and reduce risk for investors while giving them good returns. If we have 50 loans on the marketplace that to that, all the better. If we have 500 loans, great. Either way, the goal is to get quality loans out there for investors.We're actively making changes and adjustments to make these processes better. Plans in the works to overhaul a lot of the features for investors, I know it's been a long time coming.

I don't think you are doing a good job of keeping investors.   BTCjam just isn't investor friendly.

Your fees, clearly are where you make your money.   Although the number of loans has declined a great deal from what it was.   I suspect your income isn't that good now.   Too many scammers and too hostile to investors.    Anyway you certainly don't make bitcoin any other way than fees unless you are actually running the scam loans!

So you fees that are collected on the front of the loan probably average 4.5%.   4.5% of $13.789 million is $620,000.   Well maybe not rich but that isn't chicken feed either.   

The thing is, if you were really looking out for investors, the investors would be beating the drum for you and herding borrowers to BTCjam.   Your loan volume would likely be much higher.   Instead you have thread like this where people swap war stories because mostly BTCjam is a warzone for investors. 

Drop us an email at [email protected] so we can be more clear for you. Could be many reasons why, we'll help you out Thanks!

Would have to disagree here. As mentioned to another poster - LendingClub (recently IPO'd) & Prosper are two names who have proven that this is a successful model without collateral.

Drop us a line at [email protected] and we will listen to you. I believe there was an OTHER section for these types of things but apologize if that was not true. Really, send us over an email, would love to hear your thoughts out.

This is ridiculous from a business stand point. How would we ever keep investors given this model? We have no incentive what so ever as company to do such a thing. That idea that we are getting rich off fees is complete nonsense. I'm actually sorry if you believe this.

We are overhauling that to make it better. I know that is a pain for some people . It's been noted. Thanks for sharing this!

You make a lot of really great points - As you mentioned and as we show in our data (https://btcjam.com/stats) when you do go with solid scores (good loan history), you are profitable. Many people that write in about this not being true you'll find threw all of their money into one A/B rated borrower. These ratings will hold up, diversification is still key when investing in them.

LendingClub (just IPO'd). Prosper - dont have collateral based loans and have proven that this is possible.

Thanks for sharing this, can you shoot us over an email to [email protected] so we can look into your investments in detail? I think you hit some good ones there but you put a lot into borrowers, especially if you didnt have all to much to throw at them to begin with. Sorry to hear you lost some of your total capital, but if you'd like us to look into this, gladly would. One thing I can say is that we recommend heavy diversification throughout many, many listings at a very small amount like 0.01/loan. This would hedge your risk a lot more.

You should email us so we can look into your investment strategy ([email protected]) - We really suggest diversifying and if you shoot us over an email we can look into your investments and see what is going on. I listed some loans above we got last week, we've had a lot of pretty solid listings recently but Im not sure when you last used us. Drop us a line regardless so we can look into this.