I am following these threads and I am confused I have lots of btc on this site, am I hearing that BTCjam is going to help us get our investments back?
No they don't give a shit, they got there Fee's already so why should they care?
The whole we got our fees thing is getting pretty old. As I mentioned a few times already, fees dont make this business sustainable alone. This whole idea is ridiculous.
Actually, no it's not. It's a very legitimate concern and will eventually come back to haunt you and your colleagues on your BS business practices.
The whole incentive structure at BTCJam is warped. Jam receives their fee once a loan is funded, paid for by the lenders.
BTCJam are not lenders. They provide a platform, and this fee is paid for by the lenders, not the borrowers. The way the fee structure is set up is such that Jam maximizes their profitability when borrowers have the most loans funded. NOT when borrowers repay the loans. They have no interest in providing credible credit ratings, and to actually expend funds to do research to provide such ratings reduces BTCJam's profitability.
If you are a lender in BTCJam be well aware:
YOU ARE NOT OUTSOURCING ANY CREDIT RESEARCH OR RISK ASSESSMENT TO BTCJAM. THEIR FEE STRUCTURE IS SET UP SUCH THAT THEY GAIN THE MOST WHEN THE MOST LOANS ARE FUNDED. NOT WHEN LOANS ARE PAID OFF. THEY HAVE AN INCENTIVE TO GET AS MANY LOANS FUNDED AS POSSIBLE. TO ACTUALLY EXPEND RESOURCES TO PROVIDE ACCURATE CREDIT RATINGS OR SEE LOANS PAID OFF, LIKE ACTUAL LENDERS, REDUCES BTCJAM'S PROFITABILITY.
One day, someone smarter than you or myself is going to figure out a way to make this work, and they're going to put you and your ilk out on the fucking street.
EDIT TO ADD:
If you don't believe me, ask a BTCJam employee to enlighten you on how they apply credit ratings. See how far that question gets you.
Also, BTCSupport does not even attempt to dispute the claim from the poster who addressed such concerns. Maybe BTCSupport is right, the fee system does not make the business sustainable alone. But then, the question remains how do they make money or keep the business sustainable? They certainly do not profit from loans being paid off. Hmmm.
We currently approve under 10% of the listings sent to us daily. If we wanted to make money on fees, this is a good way to not accomplish that. I've given comment to this theory a few times and it goes like this...
1. Bad loans = investors losses.
2. investor losses = no investors
3. no investors = no marketplace
4. no marketplace = no company! no fees! no nothing!
If you read throughout this thread Ive actually answered this very claim time and time again and just did it again for you here ^^. It's not a way to build a great business and fees arent what make us a great company. Investor returns & quality borrowers are.
Money - we raised an A round in December. That usually helps!
How do we apply the credit ratings? We apply credit ratings in a lot of different ways. Because that is one of the coolest aspects of our company, Id rather not get into it. You dont see CocaCola and Pepsi swapping recipes publicly right?