2 Bitcoin Secured Loan: At Bitlendingclub.com (Collateral Already Escrowed)

[Vod]

The lender.  BLC is not investing their own money into any loans.

To be fair, we do invest in some of the loans, but not in this particular one. We generally try to minimize our involvement, but we may periodically invest in the loans of borrowers who we think are "underrated." In other words, the borrower has completed the verification process, but they're having a hard time finding investors.

IMO, BLC is participating in the scam by making the user believe the loan is secured, when it is not.   

I think we've been pretty clear that we won't allow the loan to stand as such, given the unanimous feedback we've received. Furthermore, our original estimation is that we will not be able to liquidate the domains for more than 1/3 of the price. Given the feedback, we've determined that that's also highly unlikely, but we were willing to cover the losses in case of a default. The loan has now been removed and we'll ask for more collateral if the borrower needs another loan.

Thank you for addressing our concerns. 

[BitLendingClub]

Thank you for addressing our concerns. 

It's my pleasure. Bitcoin lending is relatively uncharted territory, so we're always working to get the best result and improve our processes. The community's feedback has been instrumental in that regard.

[tertius993]

Who carries the risk if BitLendingClub cannot liquidate the collateral at the estimated value?  BLC or the lender?

The lender.  BLC is not investing their own money into any loans.

IMO, BLC is participating in the scam by making the user believe the loan is secured, when it is not.   

That is ridiculous, if BLC are valuing the escrow then they should be standing behind that valuation.

We are standing behind the valuation. With that said, the feedback has been consistently unanimous that the collateral provided is not substantial, therefore the loan will not be funded on our system unless the borrower provides more collateral.

In which case I withdraw my comment.

[howzar]

Some "collateral".   

Confirmed! Collateral has been transferred. The domains transferred are: brentoilspot.com and oilspotprice.com; the average valuation for both is $2,559.50 (based on 5 domain valuation sites).

The loan is for approximately 1/3 the value of the collateral I put up. The Bitlendingclub.com CEO assessed whether my proposed collateral was liquid enough to compensate investors in case of default.

The bitlendingclub CEO is obviously not that smart.  oilspotprice.net is available for $10.  So is brentoilspot.net.   Tell me why someone would shell out thousands of dollars for a worthless .com?

lolz the "values" of these websites are quite false when judged by other "domain valuation sites".  I owned a domain that was apparently worth over $250,000 USD +.

What was it? Did you sell it?

[monbux]

Domain names are worth about $0.25 (what malware distributors would pay for any random domain) until someone is interested in purchasing it for a given price, and has the capacity to purchase the domain for their offer.

Valuations value how much a domain is worth if someone is interested in purchasing it, and has the capacity to purchase it.

While it is plausible that the domains will be sold for, say $200 each, they are not easily liquidate. Seriously, nobody will buy them for even $10 in an auction. It is only when someone has an interest in that domain, then it would be possible to liquidate the domain for anywhere near any valuations.

I recommend cancelling the collateral status of the loan, or more appropriately value the domain names. I recommend a valuation price of $20 per domain, and I believe that is stretching it.

I'll lower the valuation to $20 per domain. Masterful did offer about 77 more domains, so at about $20 each, that should be about $1,450 maximum collateral. The reason I valued those two domains to about 1/3 of their appraisal value is because they're really popular keywords in the financial world, which makes them a little easier to sell/liquidate.

you would "suppose".  Good luck trying to sell 2 useless domains if the lendee defaults.  I'd suggest you stay away from domain names unless you have a confirmed offer/value upfront.