...and so the saga ends.
An announcement was made by Loanbase, who was previously BitLendingClub who re-branded as Loanbase only to revert back to BitlendingClub while keeping Loanbase and redirecting Loanbase users to BitLendingClub so that Loanbase could be something new and remain the same by using BitLendingClub and morphing into duel websites ... Loanbase and BitLendingClub.
Sound a bit confusing? Well, this should clear everything up. They just closed the doors, shutting down stating regulatory issues.
"We've worked extremely hard to build a platform and a community which is uniquely positioned to provide the Bitcoin ecosystem with a greatly needed service. However, over the last year or so, the regulatory pressures has been increasing to the point that it is no longer feasible to maintain the operation of the platform. We are regretfully announcing that we will have to begint terminating the services effective immediately. Of course, we will maintain some minimal functionality in order to allow our existing users to repay their loans and withdraw their funds"- Loanbase/BitLendingClub
The statement made in an early Wednesday email said pressure from regulations is the factor forcing them out. Strange considering nobody else seems to have a problem with it.
No website, no worries. Problem solved and we'll be free of trying to figure out the strategic thinking, or lack thereof, behind all of the bait and switch moves performed by the organization.
30 Days to Repay and Withdraw
The website will give users 30 days to finish up paying off loans and withdrawing funds, which sounds to me like they just guaranteed a bunch of defaults on Lonabase/BitLendingClub loans. Let's hope that's not the case and there wasn't any mention to mitigation of this in the email blast.
According to Loanbase, they're "sad" about the move, however judging on the barren platform that's been increasingly decreasing in use since the hack, it doesn't appear as if anybody else is.
The website says they're open .. at least there's a dude standing there with a sign that says so anyway. Their BitLendingClub website doesn't say they're closing either. However, you can read the email blast on their blog.
It appears that only the BitLendingClub service is going away and this move was likely planned long ago. They've been inching away from bitcoin for some time now. "Regulation pressure" is likely just an excuse that sounded good enough to slap on an email blast so they could do away with the few customers left on the platform and Loanbase may still keep going, albeit not in this industry.
What's in store for the entity now? Honestly at this point, I don't think anybody cares.
Report by dinbits
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