Good work guys. A+ borrower here. I see that one of your puppet accounts has about 15+ BTC in this. Really trusted the guy, eh? I'm sure that the utmost diligence was done before approving these loans...
As long as people keep blindly throwing their money at anyone and everyone, scams will persist. It's stupidity and greed, nothing more, nothing less.
No doubt that does play a role. And I'm not some disgruntled investor. I didn't invest in this loan although I have invested in that site and will walk away with a slight profit even if the .8 BTC I still have in receivables goes into default.
I'm not trying either to protect people from themselves. However, jam holds themselves out by applying these ratings to borrowers. They should be held accountable for the methodology that they use to apply such ratings. They also receive their fee once the loan is funded not when paid off. It's not hard to see that the incentive they have is to get the most loans funded, not necessarily to see the most loans to maturity.
Prospective investors should be aware of this before investing, because it is not readily apparent when initially visiting the site.
That's the big problem with these sites. The site should auto-invest in each loan from trusted members to show their commitment. This way they would have something to lose and would be more concerned about defaults.
