Crowdestate – still overrun by investors

While some other P2P portals have to work to get more investors to come on board, then Crowdestate is struggling with a different issue – there is just too much money to be used and not enough projects available. While this is also not a good problem to have for a site – if investors get too frustrated they will leave the site since they cannot employ their capital, then it’s great fuel for potential growth.

However, from the investor’s point of view it is rather annoying. Having enough money is good in the sense that projects get filled – it hardly ever happens that your money gets booked and then returned later (having earned no interest while booked), and if a project does fail there are some fundamental reasons why investors do not find it attractive.

The downside of having that much money however is that it’s quite impossible to actually get into most projects by hand. The current setup is that autoinvest has priority over manual investments, and autoinvest is not capped the same way pre-booking is (you can invest however much you want via autoinvest).

This means that most projects that are smaller than 500K are pretty much set to be filled by autoinvest. More people will start using the strategy that I do – when I see a project that I like I temporarily turn on autoinvest – and there will be even less of a chance to manage to invest by hand. In that sense it’s good – no more wasted time waiting by the computer and clicking refresh and cursing when the page refused to load.

So, there isn’t that much reason to log on when projects go live anymore. Another reason to log on could be the secondary market, but within about a week of development bots were built to trade on the secondary market, so it’s impossible to buy anything manually (unless the returns are pretty low) or for some reason all the people who run bots run out of money (which will probably not happen). So the secondary market did provide an easier way to exit, but the purchasing function is unusable for a regular investor.

All in all this means, that there isn’t much to do. If you see a project the best way to manage to invest is to set up autoinvest (and remember to turn it off later), and go enjoy the warm summer weather. Definitely a much more passive and less time restricted investment than it used to be. Now, if there were a few more projects :)

6 thoughts on “Crowdestate – still overrun by investors

  1. We are planning to make major changes to prebooking and autoinvesting processes, that would take off the time pressure and would allow all interested investors to participate in our investment opportunities. We are currently testing the solutions and hopefully are live already next week.

  2. It doesn´t seem to help to just have autoinvest activated. I have it activated all the time but still dont get in…

    1. Have you checked whether you have some necessary condition unchecked? Sometimes deleting and recreating also helps. You shouldn’t have such bad luck as to stay out all the time.

  3. Sounds great with investments that doesn’t take too much time. I like the concept. Kind of lazy investing. But returns and safety and diversifications are still important of course. I still haven’t tried any Crowdestate investment. Mainly because of living overseas but I am positive about the Baltic economies so the Crowdestate is interesting.

    Thanks for the update Kristi.

  4. Hi Kristi,

    I’m appreciate what are you doing here it really help me jump into p2p world any chance to get more article or updates about your portfolio ? What you are up to right now ? As I see you are shifting your attention to someone else?

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