I first got started in lending when I used P2P lending services such as Lending club. But found that the amount earned and the no tax breaks made for a rather poor investment compared to other investment options. That coupled with really no recourse for not paying your loans on time or defaulting on them made for an even poorer choice.
Now moving that into crypto I have a feeling there will be little to no recourse at all for those who do not pay back their loans. So is P2P lending on Binance a good option? As for me I will be staying out of it but here are some details on Binance entering the crypto lending space.
The 3 core coins to have on Binance to take part in the lending option are BNB, ETC and Tether. Not sure why Tether and ETC where picked over some others I swear the things Binance does anymore confuses the heck out of me.
The lending offers up to 15% interest (good luck trying to keep track of this and reporting it come tax time yikes!)
The real kicker and the one that throws up a SCAM alarm bell for me is this quote from Changpeng Zhao CEO of Binance. "The interest rate for each product is guaranteed, so your crypto balance will always grow, regardless of how the market moves." The key word in there is Guaranteed and is often associated with scam after scam and I would HIGHLY advise really looking into that before investing anything.
There are currently two other platforms doing this Celsius and Genesis but Binance will be one of the biggest when this gets going. I consider this to actually be high risk and a few things make me really question it.