Recently it has come to light that Prosper issued a loan through their online marketplace to the husband of the husband/wife team that were the San Bernardino shooters. I was asked to comment and help clarify some issues for a story on the excellent financial news site TheStreet.com. In the process of helping with this … Read moreIn Defense of Prosper.com
Platform risk is something mentioned here often yet rarely discussed in detail. Now we have an example of why thinking about the platform risk (the risk that the platform itself will go out of business) is something we need to think about and consider when it comes to investing on new platforms. Thanks for the … Read morePlatform Risk: What Happened to Trustbuddy?
The 3 largest Bitcoin based lending sites: BTCJam, BitLendingClub aka Loanbase, and Bitbonds, combined originate around $1.5 million worth of Bitcoin based loans per month. While this number is small, the industry is fast growing and is an important part of developing the Bitcoin ecosystem as a whole as lending/investing alternatives for Bitcoin operating … Read moreThe Bitcoin Lenders’ Bill of Rights
MSB is the shorthand for a money service business. In the US, MSBs are overseen by FINCEN (the Financial Crimes Enforcement Network), which is a part of the US Dept of Treasury. FINCEN’s primary goal is to take the lead in anti money laundering (AML) efforts and enforcement. MSBs have a 2nd level of … Read moreThe MSB: Why I Don’t Lend to US LBC traders and you shouldn’t either
This past weekend was the 2nd annual Cryptolina conference. This time, it was in Charlotte at the beautiful Spirit Square in a theater that was formerly a church. It was a fantastic conference with some great lessons. Here are some things I learned. North Carolina is a Bitcoin battleground As we have seen in NY … Read moreWhat I Learned at Cryptolina
This last month saw some huge news from the p2plending/marketplace lending world. I thought I would outline some of those stories, their impact and my thoughts on them here. Story 1: Goldman Sachs enters the business The New York Times posted a story about the news that huge investment bank Goldman Sachs is getting into … Read more3 Big News Stories in P2PLending: June 2015
The signs of early spring are here and they include warmer weather, pollen and hay fever, putting the winter coats away, and TAXES. Bitcoin investors and lenders, especially those in the US, have some quirky laws that they have to deal with in order to stay compliant. As I talked about in a previous post, … Read moreThe Bitcoin Investor’s Guide to Taxes
As most of you know by now, Lending Club is going public on Thursday. They are allocating some shares for retail investors like you and me. As part of their Direct Share Purchase program (DSP) with Fidelity, all potential investors get to see a copy of the Prospectus with S-1 SEC filing that LC filed … Read more5 Things You Should See in the Lending Club IPO Registration Statement
Today I’m continuing my Subscriber Questions Answered segment and going international. Today’s question is from Johnny, one of my Canadian subscribers, eh? Johnny has a great question. I LOVE answering questions from my subscribers so please feel free to comment here or email me any questions you have. Today’s Question from Johnny: Why haven’t any of … Read moreSubscriber Question Answered: Does This P2P Example Work Around SEC requirements?
The Fitch ratings agency, who along with Standard & Poor’s are the 2 largest US based ratings agencies just released their first report on Peer to Peer Lending. While the report is based on the lending platforms themselves, you can’t have a report on the platforms without examining the industry in which they operate. This … Read moreThe Fitch P2P Lending Report: 5 Things They Got Right and 3 Things They Got Wrong