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Collateral Holding Service: Feasible or not?

Author
Vaerah Vahrokha
Vahrokh Consulting
#21 - 2013-01-05 10:44:15 UTC  |  Edited by: Vaerah Vahrokha
Candy Oshea wrote:
I think in the case of a default, the Customer (Investor) from my point of view, wouldn't be too worried about a quick turn-around getting their isk back, as long as they get it back.

TL:DR i don;t believe its the 3rd parties job to "Carry" the cost of a bad debt, in order to liquidate isk faster. (Your last paragraph mentioned you needed some reserve.) if the item Doesn't sell well, then they have to wait until it does. imo.

Raising your NAV & Doing this can be done simultaneously. This is no reason not to offer the service!!!!


There are not many history cases of collateralized defaulted investments. Those I can recall, the investors were quite pushing to get ISK back.
In one case where there were tangible losses (collateral would not cover 100%) I offered myself to take the whole debt and pay 100% in exchange of letting me do payments. The investors preferred losing money and get ISK back ASAP over waiting for some time and get 100%.

So, expect to get pressure. As usual, not everything is sharply defined in EvE, the very fact you accepted to hold collateral somehow makes investors *trust* you have somehow investigated the investee and know the deal is bound to end well or with little to no adverse consequences.
In case *hit happens you are expected to have a "plan B", and you'll get pressured.
I.e. two times I had to hold a vastly illiquid number of assets, furthermore one of those that for some reason (be it speculation or whatever) won't rise in value for years again.
What to do? At this point you'll have to find the answer within yourself and your resources.
After long thinking I priced the collateral to the second chart downswing and took the risk. All the collateral holders who accept speculative / illiquid collateral risk more than a little.
Another case had been dealing with a pimp boat used as collateral, located on a hi sec island. The implications of the investment failing would be tangible.
I also got 2 "investments" where the self proclaimed investee just wanted to basically dump bulky / second rate collateral. That is, he never really intended to honor his bond / loan.
In the end I made 30% by reprocessing / selling their stuff so I can't really complain but once again, it involved me having high standings alts, freightering alts and other.

To me, 3rd party and (on a just less below grade) collateral holding is some of the most highest end game a player may hope to achieve in EvE, as such those professions are quite hard to "enter in" (be accepted by a community as "trustworthy") and even harder to execute in case something goes wrong.

Emma does it well to plan in advance, it's not something you invent in a day and after endless years you can fall to the dust for a single wrong move. F90X case is still recalled and got linked in GD right this week.
Emma d'Acques
Doomheim
#22 - 2013-01-07 10:15:55 UTC
I have decided to go through with this, to that end I will be creating a Corp this evening.
However, as my NAV is not high enough yet, I will not start operations immediately.

I still have missions to run for standings with the Caldari, and extra assets to acquire before I can actually start.
Before I really begin, I would like to have an audit performed, as I believe that an audit will show me possible weak points.

VV, do you still perform audits, and if so, how much would it cost me to have one performed?
The audit would not be for now, but Soon (TM).

As an extra precautionary measure, I will impose upon myself realistic limits on how much assets I handle, I don't want my own fun biting me in the ass after all.

I'm not totally useless, I can be used as a bad example.

Tom Hagen
Twilight Empire
#23 - 2013-01-07 11:02:47 UTC  |  Edited by: Tom Hagen
Emma d'Acques wrote:
I have decided to go through with this, to that end I will be creating a Corp this evening.


As if ever there was any doubt about it P

EDIT: Good Luck I hope this work out for you.
Styth spiting
Brutor Tribe
Minmatar Republic
#24 - 2013-01-07 11:12:08 UTC  |  Edited by: Styth spiting
The reason there are not any people offering 3rd party services is because people (with good reason) don't trust new players or untested and untrusted players who want to offer the service.

There are several people in Eve who do offer 3rd party services, and these people have built up trust and respect over many years to prove that they are capable of handling billions of isk worth of items, transactions, bonds, etc. that really no one else is able to compete.

It's not a lack of people wanting to offer the service, its the lack of trust. You wouldn't walk up to someone on the street and ask them to hold onto your life savings, and expect them to offer interest rates. You go with a bank that is reputable, is known and has built up a name for themselves that other people willingly and without thinking assume trust with the person.

Ask yourself this before you spend very much time setting up any type of infrastructure or business planning (before setting up a business plan).

Why should I trust you enough to transfer 10B isk of items to you, and then have another person transfer 10B isk and expect you to transfer that 10B to me. And then weeks or months later to follow though with the process of competing the transfer again?

How can I as a player looking to you for a 3rd party service expect you to not steal my 10b isk in items? To not steal the other players 10B isk? To be around in 3 months? And to complete the process again once the service has been completed?

Once you can figure this out is when you'll be ready to offer the service, any other time people will just assume you're a scammer and it will simply hurt your ability to start a reputable service.
Emma d'Acques
Doomheim
#25 - 2013-01-07 11:13:02 UTC
Tom Hagen wrote:


As if ever there was any doubt about it P

EDIT: Good Luck I hope this work out for you.


Actually, there was doubt, of that you can be assured :)
If I had thought of it as too much to handle, then I would not have gone through with it at all, no sense in doing something if you know beforehand you're going to end in the gutter.
And thank you very much.

I'm not totally useless, I can be used as a bad example.

Emma d'Acques
Doomheim
#26 - 2013-01-07 13:17:49 UTC
Styth spiting wrote:
The reason there are not any people offering 3rd party services is because people (with good reason) don't trust new players or untested and untrusted players who want to offer the service.

There are several people in Eve who do offer 3rd party services, and these people have built up trust and respect over many years to prove that they are capable of handling billions of isk worth of items, transactions, bonds, etc. that really no one else is able to compete.

It's not a lack of people wanting to offer the service, its the lack of trust. You wouldn't walk up to someone on the street and ask them to hold onto your life savings, and expect them to offer interest rates. You go with a bank that is reputable, is known and has built up a name for themselves that other people willingly and without thinking assume trust with the person.

Ask yourself this before you spend very much time setting up any type of infrastructure or business planning (before setting up a business plan).

Why should I trust you enough to transfer 10B isk of items to you, and then have another person transfer 10B isk and expect you to transfer that 10B to me. And then weeks or months later to follow though with the process of competing the transfer again?

How can I as a player looking to you for a 3rd party service expect you to not steal my 10b isk in items? To not steal the other players 10B isk? To be around in 3 months? And to complete the process again once the service has been completed?

Once you can figure this out is when you'll be ready to offer the service, any other time people will just assume you're a scammer and it will simply hurt your ability to start a reputable service.


Styth,

I have to agree with all you have said, but a person has to start somewhere.
As I have already stated, I am doing this for gameplay issues, to "up my game", and expand my gaming experience of EvE Online.

I am fully aware that I will be getting tricky questions, that I will be trolled and called a scammer, hence the planning, and questions beforehand :)

I'm not totally useless, I can be used as a bad example.

Vaerah Vahrokha
Vahrokh Consulting
#27 - 2013-01-07 16:56:04 UTC  |  Edited by: Vaerah Vahrokha
Emma d'Acques wrote:
I have decided to go through with this, to that end I will be creating a Corp this evening.
However, as my NAV is not high enough yet, I will not start operations immediately.

I still have missions to run for standings with the Caldari, and extra assets to acquire before I can actually start.
Before I really begin, I would like to have an audit performed, as I believe that an audit will show me possible weak points.

VV, do you still perform audits, and if so, how much would it cost me to have one performed?
The audit would not be for now, but Soon (TM).

As an extra precautionary measure, I will impose upon myself realistic limits on how much assets I handle, I don't want my own fun biting me in the ass after all.


I have slapped a quick check about you and found really nothing "special".

Well, there is this old post where I sort of explained some collateral pricing methods, which you could find useful these days.

I also don't expect you'd be so imprudent not to forge your API history to make it look OK, if you wanted.



The only reliable ways I have seen to earn some trust are basically in doing and be judged over time.

Now, there's a big issue where a rather large category of players seem to be ready to compromise their integrity for a big enough amount of money, even if it's just virtual currency. Either that or they believe the next guy is ready to cash in any time.

This makes your life as perspective collateral holder harder, because it's rather hard to convince them that you are not like that. There's also the factor where people judge others basing on themselves and it appears a lot feel like they'd indeed sell themselves for a certain amount indeed. They project their own belief on the others, including you.

One of the few "helpers" is to demonstrate somehow you are so filthy rich that you'd not bother scamming the "paltry" sums involved in your services.

I don't know exactly why I have convinced people to trust me despite I have been quite poor till I started swing trading. I can only guess it's been because I somehow talked enough (often saying utter crap! P) for them to know how I am: that is possibly an utter moron but that couldn't steal a grain of salt even if it jumped in my pocket. And that's plenty enough!
This is also possibly why Shar was trusted too when he played.

If that theory is correct, then you'll need to reply to threads and generally make the other guys know you, how you think, what you believe in and so on, for quite some time.

A good starting point could be me borrowing you something valuable for a while and see if you send it back.

Now, I have an unspecified number of billions worth of materials and could borrow these you to "test" you'll give them back, but then everybody will say you just gave it back because you want to "pass the test with VV".
So you have got to find someone else to do that in my place.
Emma d'Acques
Doomheim
#28 - 2013-01-07 21:56:48 UTC
The post you linked to was one I started searching for immediately, it's what I based my pricing on :)

As to trust: There is only one way to gain this, and that is by actually doing what I claim to do.
Trust is the most valuable commodity in EvE, and is more than priceless, thus it should not be given freely.

On the matter of posting: Posting for posting's sake seems lame to do, and I refrain from posting if I feel I have nothing of value to add. And sometimes, I go horribly wrong with my posting still :)

About the borrowing thing: The value of that would be exaclty zero.
It would only show people that I know how to create a contract, and how to keep items in one station in the entire EvE Universe.
Nothing would be made clear on how I conduct my business, how my nature of replies are, and most importantly of all, how I react to adversity.
And no, I am not actively looking to "pass the test with VV".
If I request an audit, it will be from a neutral person, so that objectivity can be guaranteed (as far as that's possible in EvE).

I'm not totally useless, I can be used as a bad example.

Vaerah Vahrokha
Vahrokh Consulting
#29 - 2013-01-08 11:01:45 UTC
Emma d'Acques wrote:

On the matter of posting: Posting for posting's sake seems lame to do, and I refrain from posting if I feel I have nothing of value to add. And sometimes, I go horribly wrong with my posting still :)


It's not just lame, it's going to actually make people understand you are "farming" rep and will translate into a nice punch in your guts.

It's also not something "you" can cause. It's something that has to happen by itself.
I.e. you can't "convince yourself" that you HAVE to post.
You have to really be interested in a number of topics, i.e. how markets work, how loans work, giving suggestions to other people and so on. Also, sometimes I tend to ramble and talk my stories a lot in game, on SCC Lounge. Like today, rambling about BG2 and Planescape: Torment till we got disconnected by DT.
Because *that* is the point people want to see in you: participation. Not empty words.


Also, about "becoming by doing" is indeed a nice thing to do.

What worked for me was to take super small jobs at first, and for free.
Tom Hagen
Twilight Empire
#30 - 2013-01-08 14:35:35 UTC
Vaerah Vahrokha wrote:
Planescape: Torment.


I will like your post just because awesome game dropping ;-)
Here I thought the game had fallen into a dark pit to never be mentioned again. I hope you mentioned it in a good context :-)
Vaerah Vahrokha
Vahrokh Consulting
#31 - 2013-01-08 18:15:31 UTC
Tom Hagen wrote:
Vaerah Vahrokha wrote:
Planescape: Torment.


I will like your post just because awesome game dropping ;-)
Here I thought the game had fallen into a dark pit to never be mentioned again. I hope you mentioned it in a good context :-)


That was some of my most fruitful purchase I have done in my gaming life. Along with BG2, it defined an era. An era I miss.
Rakshasa Taisab
Sane Industries Inc.
#32 - 2013-01-09 19:40:23 UTC
Guy who doesn't even have a quarter of the likes in total required to run in the CSM elections asks to be a holder of collateral...

Nyan

Emma d'Acques
Doomheim
#33 - 2013-01-09 20:41:33 UTC  |  Edited by: Emma d'Acques
Rakshasa Taisab wrote:
Guy who doesn't even have a quarter of the likes in total required to run in the CSM elections asks to be a holder of collateral...


There is nobody forcing you to use my services, once I open up.

As you have undoubtedly deduced from
A - The topic
and
B - All the posts in this thread,

you will also have understood that any service offered by myself is unexistant at this time.
In the event that you have not bothered to read the entire thread, I kindly urge you to do so, and offer any criticism and/or sage advice afterwards.

Untill then, I will regard your post as a bad attempt at trolling.

I'm not totally useless, I can be used as a bad example.

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