Another P2P Platform on the Run
Last year, Wisefund proved to be no more than another Ponzi scheme on the P2P market. Getting closer to their final exit, they offered loans with returns of 20% and more. A last effort to draw as much money as possible from their investors.
Their projects shared many similarities with the Envestio scam.
Since 2021, criminal investigations against Wisefund is ongoing.
Now, it is clear that Crowdestor will probably be the next P2P platform to fall.
Loans that Crowdestor currently offer come with hefty returns. Simply to hefty to be true. No start-up company, or any other company, can afford to pay more than 30 percent in interest rates. That is simply an unhealthy business model.
If you look closely at these two offering, you can see that it is mostly mumbo jumbo and no clear information on how these companies will actually make money, much less be capable of paying a 30-percent interest on a loan.
More than 30 percent of the projects are delayed more than 91 days. Very few are in recovery and the information from Crowdestor is extremely poor.
Often, investors are told that the investments will be paid back within a specified time frame, which is then extended. Again and again.
After being initially positive to Crowestor, we stopped investing on the platform early in 2020 and expect that about 50% of our investments are gone.
Do not for a minute believe that your loans are secured or that they will be bought back by Crowdestor or anybody else.
An initial buyback fund for defaulted loans was quickly withdrawn and there is no buyback guarantee what so ever.
The secondary market will show you that the trust in Crowestor’s investment opportunities is very low.
What Others Say
Emiel V, NL
This looks like a scam.
Don’t want to bring the bad news, but this platform is over, sell and withdraw…
Bogdan Cozma, Romania
I invested in 8 projects.
Three of them have monthly payments of principal and interest.
One was full repaid.
Two of them are with late payments.
In one of them the last 4 payments are not payed and the information in dashboard is always the same “The payment scheduled for 2021-XX-XX has not been received. We continue to act according to the debt collection procedure.”
The rest, five projects, the loan principal and interest will be payed in a bullet payment at the end of the Loan Term.
One of this projects have late payments and crowdestor send voting form to investors to choose between two options and the results was loan extension of 6 months with increase in interest rate received.
So in 8 projects 3 of them have late payments, the 37,5% so is quite risky investment.
Is a platform with good interest rate but the late payment and the lack of information about the status of the projects you invest is something that a serious investor cannot afford and they must improve a lot.
The secondary market have a lot of projects with discounts up to 50% for projects with more than 91 days of late payments.
In secondary market there are many projects with late payments because they are very difficult to sell despite the discounts.
Despite all some projects are current.
As you can see, the risk of investing is high and you can lose an important part or all of the investment.
Stiliyan Nenov, Bulgaria
DON’T waste your time and money ! This is a scam !
I have invested in Mafia Stars “project”. I was lucky to receive almost the full amount of the principle but my interest payments are still delayed more than 4 months and I consider them as a loss because I do not receive adequate response after 3 emails. To me this is a scam and I will start legal actions as well. DON’T waste your time and money guys.
Carlos Ortiz, Ecuador
From my experience, I can say that all my investments I made I have only recovered 10% of them.
There are many delays in payment and there are no real responses that the debts are executed from the borrowers.
I thought this platform was a good option but it leaves a lot to be desired.
The worst platform after Kuetzal and Grupeer that I have invested in.
I only lost money and I believe Crowdestor’s business model is closer to the other platforms mentioned above than to a sustainable and transparent model.
Example of the Stalling Tactics
In total, the Borrower has funded 4 campaigns on the platform. The first two have been repaid according to the schedule, the third one will be repaid by March 20. The Borrower has confirmed that this campaign will be settled from private funds in full, including the delayed penalty fee by the end of April.
The Borrower has repaid 3 of the 4 campaigns and has informed that, as promised previously, this campaign will be repaid in full by the end of April.
The Borrower has confirmed that it is already organizing the funds to make the payments, which are promised to be made by the end of June.
The Borrower has informed us that the funds intended for repayment of the loan have been accumulated from the company’s cash flow, and the money will be repaid to CROWDESTOR investors by the end of July/beginning of August.
Today, the Borrower has fully repaid another project on the CROWDESTOR platform. The Borrower has informed that it plans to repay this loan in the following weeks.
There are better platforms and more professional companies that can deal with broken promises.