It was patently obvious that ‘returns of 30%+’ were too good to be true.
The collapses of FCA Regulated P2P lenders in the UK should have been enough of a warning sign. Let alone companies domiciled in Georgia.
Kuetzal vanished. Probably a scam. Now Envestio has vanished.
The blogs full of affiliate links vanished too. Torn down. noindexed.
Colour me surprised. Remember:
‘If it sounds too good to be true, it probably is
You can diversify away from P2P risk to a degree. Hold only a small portion of your portfolio. Hold in a number of P2P providers. Sure. However, the chances of getting stung by a ‘sounds too good to be true’ Ponzi scheme in the P2P field is high.
Here is another warning: Mainstream P2P is on the edge of a cliff.
The Times reports Zopa and RateSetter emergency funds are running dry. These are two of the biggest P2P lenders in the UK.
Getting your money out if one of these providers collapses is going to take months. If you see any at all. Are you prepared for that eventuality?
Personally, I hold nothing in P2P.
This post is a Medium exclusive by moneymage