[Secured Loan] Reputation Loan 0.6 BTC

[kgantchev]

Congratulations to Masterful for posting the second secured loan on BitLendingClub: https://bitlendingclub.com/loan/browse/lid/752

Loan Terms:
Expires: 2014-06-04/00:46 (in +27 days)
Status: Listing Funding
Amount: 0.60000000 BTC
Term: 30 days
Payment Frequency: every 14 days
% Funded: 16.7% funded (BTC 0.50000000 left)

His first loan was funded and repaid early: https://bitlendingclub.com/loan/browse/lid/747

We are holding two domain names as collateral valued at about $2,559.50 total: brentoilspot.com and oilspotprice.com
The valuation was based on the average appraisal price from estibot.com, valuate.com, domainappraisal.co.uk, sedo.com and domainindex.com

Here is the image of BitLendingClub's namecheap account with both of the domains names in there: https://i.imgur.com/fU9ftJ9.png


The community's feedback has been that the likelihood we'll be able to liquidate the collateral, at 1/3 of the valuation price, is very low. This loan has been funded and we're still backing it, even if we can't liquidate the collateral for 0.6 BTC.
Best Regards,
Kiril Gantchev
CEO of BitLendingClub

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[Vod]

This loan is not secured.  Those domains are not worth anything. 

BLC - get your act together and stop misleading users here.   

[ncsupanda]

This loan is not secured.  Those domains are not worth anything. 

BLC - get your act together and stop misleading users here.   

Also, aren't reputation loans frowned upon?

[KWH]

This loan is not secured.  Those domains are not worth anything. 

BLC - get your act together and stop misleading users here.   

Also, aren't reputation loans frowned upon?

In a word: Yes.

[BitLendingClub]

This loan is not secured.  Those domains are not worth anything.  

BLC - get your act together and stop misleading users here.  

My assumption was that we can liquidate the domains at 1/3 of the value, if weren't able to liquidate in case of a default, then  we're still going to cover the losses of the investors. However, the feedback from the community has been pretty unanimous that our assumption about the possible liquidation price is wrong. Since this is the first time we accept domain names as collateral, we're still working out the best way to valuate them. The loan was funded with 0.6 BTC, so if there is a default, then we'll cover the losses.

In either case, we always stand behind the decisions we make and we weren't going to let our investors incur a loss, even if we had made an error in judgment. This is why the community's feedback has been so instrumental to us.

[mnporter2001]

This loan is not secured.  Those domains are not worth anything.  

BLC - get your act together and stop misleading users here.  

My assumption was that we can liquidate the domains at 1/3 of the value, if weren't able to liquidate in case of a default, then  we're still going to cover the losses of the investors. However, the feedback from the community has been pretty unanimous that our assumption about the possible liquidation price is wrong. Since this is the first time we accept domain names as collateral, we're still working out the best way to valuate them. The loan was funded with 0.6 BTC, so if there is a default, then we'll cover the losses.

In either case, we always stand behind the decisions we make and we weren't going to let our investors incur a loss, even if we had made an error in judgment. This is why the community's feedback has been so instrumental to us.

Simple really just ask me, or someone else that knows about such things, don't rely on these valuation websites, there a nonsense.

Take a look at sites such as  flippa that will give you an idea at least, but even some of the sales on there are ridiculous.

Cheers
Mark

[BitLendingClub]

Simple really ask me, or someone else that knows about such things, don't rely on these valuation websites, there a nonsense.

Cheers
Mark

I appreciate the input, we'll keep that in mind for the future. I just want to point out that we're OK with making mistakes, we learn from them and we won't let our investors down just because we made a mistake. Masterful's 0.6 BTC loan was funded, but his 2 BTC loan will not be able to get funding unless better collateral is posted. We really appreciate your feedback, it has been very helpful in fine-tuning our processes!

[eternalgloom]

I would avoid using domains as collateral since it would be very hard to put an exact value on a domain.

[jonald_fyookball]

Domain would have to be much greater in value.  Obviously a 1 word .com domain is very valuable.