The purpose of this short post is to warn my readers about possible issues with Kuetzal.
I’m not going to go deep in the details as it was very nicely written in this post. In short, it seems that either Kuetzal is purposefully hiding information from its investors or Kuetzal’s borrowers are just easily fooling them. Maybe both… Looking at Kuetzal’s terms and conditions 5.6 “The Portal Operator does not perform any due diligence of the Borrower or the Project” it seems like anyone can borrow money from them. For me this is unacceptable.
I don’t know what will happen next, but I made my decision. This morning I sent a request to Kuetzal to withdraw money from all investments with buyback guarantee. Luckily, I have only around 1K euro invested on the platform and I’m ready to lose 10% (early exit fee). Please don’t take it as a recommendation. I’m not panicking and don’t want others to panic. To be honest, I’m even not sure whether this “money guarantee” thing will work this time. I didn’t get any answer yet, we will see how it goes.
In conclusion, I would like to emphasize the importance of a well-diversified portfolio. We can’t predict the future. We don’t know when the stock market or real estate will crash. We can’t predict which P2P platforms will go out of business or will turn out to be a scam. I believe that instead of trying to predict the unpredictable we should keep our portfolios diversified and avoid having too much money concentrated in one asset. A well-diversified portfolio should be diversified not only among different asset classes but also within an asset class. Stocks, bonds, real estate, different p2p platforms, businesses/startups, cryptocurrencies, gold, cash … you name it.
Feel free to share your thoughts/questions below. Stay diversified and happy investing!