This year has been quite an experience to any investor. The European P2P industry is now reckoning with the impact not only of COVID-19 but specially with the break in trust that resulted from suspicious, troubling and fraudulent P2P Platforms. This lead to a number of ongoing criminal cases, with police investigations under way. In some cases, there are clear signs that at least some frauds are interconnected. The goal of this post is to share a update on a list of platforms I follow that I prefer to avoid.
Please let me know if I’m making any mistakes in the list below or if I should include additional platforms and why…
Suspicious and Troubling P2P Platforms
The following P2P platforms are operating, and serving clients, even if I would be very careful in investing in these. If situation improves, it will be great to remove them from this list in the future.
iban Wallet
iban Wallet is among the most discussed platforms in the industry, and not for good reasons. As you remember, when reviewing the platform I highlighted the lack of transparency about the financials, operations and business structure of the entire organization.
Check the post below to understand my concerns about the platform.
iban Wallet: A Warning Message
Fastinvest
FastInvest is one of the most controversial P2P platforms in Europe. Check the article below to learn more about my current perspective. Because of this post my FastInvest was terminated and I received the small amount still there. Based on available information, funds are still been paid, but many investors are ready to go to courts.
FastInvest: Time’s Up! A new investor legal action?
A group of investors started collecting information from all interested in proceed with a legal action. You can find the questionnaire here. And if you want to be informed on all the activity, my recommendation is for you to join the dedicated Telegram Group.
DoFinance
doFinance is Alfa Finance Group peer-to-peer loan marketplace. Since April there was a serious liquidity problem that lead to significant delays in withdrawals. This is a P2P platform in trouble and better to wait the normalization of market conditions before investing, making sure they are able to maintain operations until then.
If you want to be informed on all the activity, my recommendation is for you to join the dedicated Telegram Group.
TFGcrowd
I have a TFGcrowd account, but my stressful experience with other P2B platforms is leading me to reduce my exposure. Check the article below to learn why.
TFGcrowd: Unlikely Survivor
If you want to be informed on all the activity, my recommendation is for you to join the dedicated Telegram Group.
Housers
I avoid Housers entirely. From problems among founders to investors suing the company at Spanish courts, I don’t what to take part of it at all… a penalizing fee structure with many loan projects that were never concluded. Better to avoid.
If you want to be informed on all the activity, my recommendation is for you to join the dedicated Telegram Group.
Fraudulent Platforms
Based on my personal assessment and losses, the following P2P platforms are fraudulent scams. Investor class actions have started and there are ongoing police investigations.
Kuetzal
Kuetzal is a scam. Nothing more to say… If you want to be informed on all the activity, my recommendation is for you to join the dedicated Telegram Group.
7 Lessons to Protect Yourself From P2P Scams
Envestio
Envestio is a scam. Nothing more to say… If you want to be informed on all the activity, my recommendation is for you to join the dedicated Telegram Group.
7 Lessons to Protect Yourself From P2P Scams
Grupeer
Grupeer is a criminal case. If you want to be informed on all the activity, my recommendation is for you to join the dedicated Telegram Group.
7 Lessons to Protect Yourself From P2P Scams
Grupeer (scam update): Know Your Client
Monethera
Monethera is a scam. Nothing more to say… If you want to be informed on all the activity, my recommendation is for you to join the dedicated Telegram Group.
7 Lessons to Protect Yourself From P2P Scams
Wisefund
Wisefund is a criminal case. If you want to be informed on all the activity, my recommendation is for you to join the dedicated Telegram Group.
Wisefund: Enough! Time to Mobilize
Conclusion
This year with all the financial upheaval it brought exposed suspicious, troubling and fraudulent P2P platforms. Those with weak financial capacity to cope with difficult economic times also are facing the challenge. This is also an opportunity for all investors to test and check examples of good risk management and customer service from a small number of platforms, making it clear that this asset class still needs a lot of work to be a reliable option, but it has a lot of potential for the future.
But something that I hope will be clear at the end of this text is that investing in P2P loans is not for all investors. Be aware of the potential benefits, but don’t forget the risks.
We, as investors, should do the same, as Killer Mike urged protesters to do in Atlanta: “plot, plan, strategize, organize and mobilize“. Then act!
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