I’ve written about what I consider to be the best P2P lending platforms at the moment for investing, however after the debacles on various other platforms during the past few months, people have been reaching out to me to ask about which platforms they should not trust.
I think it’s a good idea to list which platforms I actively avoid so you can do your own research about them and potentially avoid them as well. I’ve had the idea to write this post for a long time but I originally wanted to write a longer post about each of these platforms to explain my reasoning. Until I have the time to do so, I’ll just list them and try to describe in a line or two why I don’t trust them.
Platforms who were in the original list and eventually went bust are marked with a strikethrough.
- Robocash – has regulatory trouble in the Philippines.
- Fast Invest – funded by an ICO and too much focus on the founder’s story, which I don’t find believable anyway. Read my review of Fast Invest.
- Monethera – shady buyback guarantee.
- Wisefund – sparse information about the projects they are funding.
- Boldyield – not convinced about their way of measuring LTV, and I’ve had negative experiences with a similar platform in the past (Lendy).
Kuetzal– seems to be a scam. Envestio– featured several dubious projects in the past, although things seem to be improving lately. Read my review of Envestio.
Hopefully, I’ll have some time to write about the platforms mentioned above in more depth at a later stage, if they survive till then.
There are some other platforms that I don’t necessarily think have serious management problems or are scams, however, I do avoid them just the same as I don’t think it’s worth the time and hassle to invest in them. Bondora is one such example I can think of. I’ve never liked their branding nor the returns they’ve been able to generate for investors, and although they were one of the pioneers in the industry, they now lag far behind other top players such as Mintos.
Do you agree with my choices? Let me know if there are other platforms you actively avoid investing in and why.
The P2P Platform Graveyard
Several P2P lending companies have gone bust over the past years. Here’s a list of them:
What’s your prediction for the next one to join the list?