The reasons for P2P benign exit are:
1, many platforms that publish benign exit announcements are due to the difficulty in withdrawing cash, because once the cash is withdrawn, investors will start to transfer a large amount of investment funds, which will have a great impact on the normal operation of the platform.
2. Poor operation of the platform leads to the platform losing money, so as to complete the redemption after absorbing investors' funds.
3. If there are many overdue loan projects on the platform and the liquidity of the platform is insufficient, the platform will usually choose to quit after liquidation because it cannot complete redemption.
Extended data:
Investment risk of P2P platform
1, simple self-financing mode: open bidding with high interest rate is often adopted, and investors' profit-seeking psychology is used for financing.
2. Multi-platform self-financing and self-guarantee mode: the platform controller establishes multiple platforms at the same time, and the funds between platforms are borrowed from each other to meet the self-financing demand. The platform and the guarantee company belong to the same boss or group company.
3. Short-term fraud: make full use of investors' psychology of making quick money, attract customers to invest in the form of recharge and cash back, "second mark" and "day mark", and then abscond with the money before the first repayment cycle comes, and the survival time is very short, the shortest is only 1 day.
4. "Ponzi scheme": investors' money does not enter the hands of real borrowers, but idling on the platform, and the funds are always controlled in the accounts of platform controllers and shareholders. Finally, after the platform can't support or get enough income, the actual controller absconds with money.
References:
P2P—- Baidu Encyclopedia