Crowdestor.com Review

Based on looking at the website, Crowdestor.com appears to be an investment platform focusing on P2P lending and crowd-investing in various projects.

However, a deeper dive into its operational model reveals significant concerns from an ethical perspective, particularly regarding the concept of interest riba and the speculative nature of its offerings.

From an Islamic finance viewpoint, any platform built on interest-based transactions is problematic and should be avoided.

The site explicitly highlights “earned interest” and “different interest rates,” which directly contravenes the fundamental principles of halal finance.

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• Platform Type: P2P Lending and Crowdfunding Investment in loans
• Ethical Compliance Islamic Finance: Not Recommended Riba-based
• Key Feature Highlighted: Earning “up to 28% p.a. or even higher” through “earned interest”
• Transparency: Provides statistics, annual reports, and various policy documents.
• Risk Factors: Explicitly mentions “Risks” section, which is crucial for any investment platform.
• Current Status: “Currently, no new Business loans are issued” at the time of review.

Crowdestor.com markets itself as a source of passive income through investing in a portfolio of projects including real estate, energy, and even movie production.

While the appeal of high returns, stated as “up to 28% p.a.,” might attract some, the underlying mechanism of these returns is predicated on interest-bearing loans.

This fundamentally clashes with Islamic financial principles, which strictly prohibit riba interest due to its exploitative nature and the promotion of wealth accumulation without genuine productive effort or shared risk.

For those seeking ethical investment avenues, Crowdestor.com’s model presents an insurmountable barrier.

The focus on lending with fixed interest rates, regardless of the project’s actual performance, is a direct contradiction to the spirit of equity-based partnerships and risk-sharing that is central to halal finance.

Therefore, for a discerning investor guided by ethical considerations, particularly those rooted in Islamic teachings, Crowdestor.com is not a suitable platform.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Best Alternatives for Ethical Investing Non-Riba, Halal, Non-Gambling, Non-Forbidden Categories:

Given that interest-based investments are not permissible, here are some ethical, non-edible alternatives that align with Islamic principles:

• Islamic Art & Calligraphy: Investing in, collecting, or even creating and selling Islamic art and calligraphy. This sector focuses on beauty, heritage, and cultural expression without involving interest or speculative financial instruments.
  • Key Features: Aesthetic value, cultural preservation, spiritual inspiration.
  • Average Price: Varies widely from affordable prints $20-$100 to unique commissioned pieces $500+.
  • Pros: Halal, promotes cultural appreciation, can be a long-term asset, supports artists.
  • Cons: Liquidity can be low for unique pieces, market value subject to trends.
• Ethical Tech Accessories: Investing in companies that produce and distribute ethical tech accessories e.g., sustainable phone cases, fair-trade chargers, privacy screen protectors. Focus on companies with strong ethical sourcing and labor practices.
  • Key Features: Sustainability, durability, privacy-enhancing.
  • Average Price: $15-$100 depending on the product.
  • Pros: Supports ethical production, wide market appeal, practical utility.
  • Cons: Market can be competitive, product lifecycles can be short due to tech advancements.
• Sustainable Home Goods Non-edible: Investing in businesses that create durable, eco-friendly home products e.g., bamboo kitchen tools, reusable cleaning supplies, organic cotton textiles. Look for certified ethical brands.
  • Key Features: Eco-friendly materials, long-lasting, reduces waste.
  • Average Price: $10-$200 depending on the item.
  • Pros: Environmentally conscious, growing market demand, practical for daily life.
  • Cons: Can be pricier than conventional alternatives, consumer education may be needed.
• Educational Resources & Tools: Investing in companies that develop and sell educational materials, physical learning tools, or STEM kits e.g., coding robots, science experiment kits, educational puzzles. This promotes knowledge and skill development.
  • Key Features: Cognitive development, skill building, engaging content.
  • Average Price: $25-$300 for kits and specialized tools.
  • Pros: Benefits society, timeless demand, supports intellectual growth.
  • Cons: Requires constant innovation, market can be niche.
• High-Quality Modest Apparel Non-jewelry: Investing in brands that produce high-quality, ethically sourced modest clothing lines. This can include durable fabrics, timeless designs, and practical everyday wear.
  • Key Features: Durability, comfortable fabrics, modest designs, versatile.
  • Average Price: $30-$200 per item.
  • Pros: Caters to a specific ethical market, promotes modesty, can have strong brand loyalty.
  • Cons: Fashion trends can influence sales, requires careful inventory management.
• Durable Outdoor & Camping Gear Non-entertainment: Investing in companies producing high-quality, durable outdoor equipment e.g., tents, hiking backpacks, cooking sets, lanterns. This encourages healthy, active lifestyles.
  • Key Features: Robust construction, weather-resistant, practical utility.
  • Average Price: $50-$500+ depending on the item.
  • Pros: Promotes health, practical use, long lifespan, encourages connection with nature.
  • Cons: Seasonal demand, niche market, can be competitive.
• Productive Tools & Equipment Small Business: Investing in businesses that supply tools or equipment for small, productive home-based businesses or workshops e.g., woodworking tools, sewing machines, art supplies for resale. This fosters self-sufficiency and genuine economic activity.
  • Key Features: Utility, durability, enables production.
  • Average Price: Varies widely, from $20 for small tools to $1000+ for machinery.
  • Pros: Supports entrepreneurship, fosters self-reliance, tangible assets.
  • Cons: Can be a high-cost entry, requires technical knowledge for specific tools.

Understanding Crowdestor.com: A Closer Look at its Model

Crowdestor.com presents itself as a crowdfunding platform where investors can put their money into various business projects and earn returns.

The website prominently displays statistics like “€57.2M Funded Amount” and “19.65% Average Investors earnings p.a.” These figures aim to instill confidence and highlight the platform’s profitability for its users.

The operational model, as described on their homepage, involves investors adding funds to their Crowdestor wallet and then “investing in loans.” This is where the core issue lies.

The platform’s revenue generation for investors explicitly comes from “earned interest.” This direct engagement with interest-based lending, or “riba,” immediately flags Crowdestor.com as problematic from an ethical standpoint for anyone adhering to Islamic financial principles.

The concept of earning money purely through lending with a predetermined interest rate, rather than through shared risk in a productive enterprise, is fundamentally discouraged. Greenacornproperty.com Review

Crowdestor.com’s Business Model: Interest at its Core

The primary mechanism for generating returns on Crowdestor.com is through providing loans to various businesses.

The platform acts as an intermediary, connecting investors with projects seeking financing.

While the projects themselves might be in seemingly legitimate sectors like real estate, energy, or forestry, the method of investor compensation is crucial.

The website explicitly states, “Receive invested funds as well as earned interest.” This clearly indicates that the returns are fixed or predetermined interest payments, not profit-sharing based on the actual performance or ethical profit generated by the underlying business.

• Interest-Based Lending: The foundation of Crowdestor.com’s investment model is rooted in interest. This is a crucial distinction from equity-based crowdfunding or profit-sharing models.
  • Investors are essentially lenders.
  • Returns are labeled as “earned interest.”
  • This model is widely considered problematic in many ethical frameworks, particularly Islamic finance.
• Diverse Project Portfolio: The platform claims to offer a wide range of investment projects, including:
  • Energy: Projects related to sustainable or conventional energy generation.
  • Movie Production: Financing for film projects.
  • Real Estate: Development or acquisition of property.
  • Restaurants: Funding for hospitality businesses.
  • Forestry: Investments in timber or forest management.
• Passive Income Generation: The appeal of Crowdestor.com largely rests on its promise of “passive income.” Investors can select projects, commit funds, and then, in theory, simply wait for the interest payments to accrue.
  • Automated Process: The “How it works” section highlights a simple three-step process: Register, Invest, Earn.
  • Monitoring: Investors can “Easily monitor your investments and returns by viewing your profile.”

The problem with this approach, from an ethical and Islamic perspective, is that it prioritizes a guaranteed return over shared risk and genuine productive effort. Translatepress.com Review

In Islamic finance, wealth should be generated through tangible assets, productive enterprises, and shared profit/loss, not through the mere lending of money with a fixed, predetermined return that shifts all risk to the borrower.

Crowdestor.com’s Features: What the Platform Offers

Crowdestor.com offers a streamlined experience for those looking to engage in P2P lending.

While the underlying financial model is ethically questionable for certain demographics, the platform itself presents a user-friendly interface and various features designed to attract investors.

• User Registration and Verification: The process is designed to be quick and efficient.
  • “Fill in the registration form and pass the automated verification process in just a matter of minutes.”
  • Requires a camera and an identity document for verification. This is standard practice for financial platforms to comply with KYC Know Your Customer regulations.
• Investment Wallet: Investors can add funds to a dedicated wallet on the platform.
  • “Add funds to your CROWDESTOR wallet to become an active investor.”
  • This centralizes funds for ease of allocation across multiple projects.
• Project Selection and Diversification: Investors have the ability to choose specific projects they wish to fund.
  • “Choose and Invest.”
  • The platform highlights “different interest rates” allowing investors to “diversify your investments.” This suggests a strategy to spread risk across various loans.
• Monitoring and Reporting: Investors can track their investments and returns through their profile.
  • “Easily monitor your investments and returns by viewing your profile.”
  • Funds are accessible “as soon as the loan repayment is completed.”
• Provision Fund: The website mentions a “Provision Fund.” This is typically a reserve designed to cover potential defaults or provide a buffer against losses, offering a layer of supposed security for investors. However, the effectiveness and ethical implications of such funds can vary.
  • This fund aims to reduce investor risk.
  • Details on its structure and application would be found in their terms and conditions.

While these features aim to make investing accessible and seemingly secure, the core principle of earning interest remains, which is the main ethical hurdle.

The ease of use does not negate the problematic nature of the financial transactions involved for those adhering to strict ethical guidelines. Betterhearing.com Review

Crowdestor.com’s Cons: Why It’s Problematic

While Crowdestor.com boasts attractive returns and a user-friendly interface, its fundamental model presents significant ethical and practical drawbacks, particularly for those seeking financial transactions aligned with Islamic principles.

The concept of “interest” riba is the primary red flag, making the platform unsuitable for a substantial portion of the ethically-conscious investor community.

• Interest-Based Model Riba: This is the foremost and most critical disadvantage. The platform explicitly states that investors earn “interest” on their loans. In Islamic finance, riba is strictly forbidden due to its inherent unfairness, potential for exploitation, and tendency to concentrate wealth without genuine productive effort or shared risk.
  • Exploitation: Riba places the burden of risk almost entirely on the borrower, guaranteeing a return for the lender regardless of the project’s success or failure.
  • Lack of Shared Risk: True Islamic investment involves sharing both profit and loss Mudarabah or Musharakah, where the investor bears a portion of the risk alongside the entrepreneur. Crowdestor.com’s model lacks this crucial element.
  • Economic Inequality: Historically, riba has been linked to increased wealth disparity and economic instability, as it favors capital over labor and productivity.
• Speculative Nature of Projects: While the projects may seem diverse, the underlying “investment” is a loan. The success of the “interest” payment relies on the borrower’s ability to generate sufficient income from a project that may inherently be speculative e.g., movie production, certain real estate ventures.
  • Gharar Uncertainty: Even with a provision fund, the ultimate outcome of a loan in a volatile sector can involve significant uncertainty for the borrower, which translates to potential ethical issues in the contractual agreement.
• “Currently, no new Business loans are issued”: A prominent banner on the homepage states this. This is a significant operational drawback, indicating a lack of new investment opportunities.
  • Limited Opportunities: Investors joining now would find no new projects to fund, rendering the platform effectively inactive for new capital deployment.
  • Impact on Diversification: If there are no new loans, the ability to diversify across different projects is severely curtailed, potentially leaving existing investors with limited options for reinvestment or further engagement.
• Potential for Defaults: As with any lending platform, there is always the risk of borrowers defaulting on their loans. While a “Provision Fund” is mentioned, its effectiveness and the recovery process for investors are crucial details that need rigorous examination.
  • Debt Collection: The website has a “Debt Collection” policy, indicating that defaults are a recognized part of their business model.
  • Investor Risk: Despite protective measures, the ultimate risk of losing capital remains for investors.
• Regulatory Scrutiny: P2P lending platforms have faced varying levels of regulatory scrutiny globally. The lack of explicit information on regulatory compliance on the homepage, beyond general terms, could be a concern for some investors.
  • Jurisdiction: Based in Estonia, investors from other regions might face challenges with legal recourse in case of disputes.

In summary, for individuals prioritizing ethical financial practices, Crowdestor.com’s reliance on interest-based lending makes it an unsuitable and potentially harmful option.

The operational pause on new business loans further detracts from its utility, even for those less concerned with ethical finance.

Crowdestor.com Alternatives: Ethical & Productive Avenues

Given the ethical concerns surrounding Crowdestor.com’s interest-based model, it’s crucial to explore alternatives that align with ethical investment principles, particularly those that are halal. Partsforwatch.com Review

These alternatives focus on real economic activity, shared risk, and productive ventures, steering clear of interest riba, excessive speculation gharar, and forbidden industries.

• Equity Crowdfunding Halal-compliant platforms: Instead of lending with interest, equity crowdfunding involves investing in a company in exchange for shares equity. This means you become a part-owner and share in the company’s profits and losses, aligning with Islamic finance principles of shared risk.
  • How it works: Investors buy shares in startups or growing businesses.
  • Ethical Check: Ensure the underlying business is halal e.g., not involved in alcohol, gambling, conventional finance, etc..
  • Example Platforms research for halal compliance: Seedrs requires careful project selection, Crowdcube requires careful project selection. Always verify individual project compliance.
• Sukuk Islamic Bonds: These are Islamic financial certificates, similar to bonds, that represent an ownership share in a tangible asset or a business venture. Unlike conventional bonds, which are interest-bearing debt obligations, Sukuk are structured to comply with Sharia law, often representing a share in the ownership of an asset, a lease, or a service.
  • How it works: Investors buy Sukuk, which entitles them to a share of the profit generated by the underlying asset or project.
  • Availability: Offered by governments, corporations, and financial institutions in Muslim-majority countries and increasingly in Western markets.
  • Research: Look for Sharia-compliant Sukuk funds or individual Sukuk issuances.
• Halal Stock Market Investments: Investing in publicly traded companies that comply with Sharia principles. This means avoiding companies whose primary business involves interest, alcohol, pork, gambling, entertainment podcast, movies, etc., or other forbidden activities.
  • How it works: Invest in specific stocks or exchange-traded funds ETFs that track Sharia-compliant indices.
  • Screening: Use Sharia screening services or Halal investment platforms to identify compliant stocks.
  • Example Index: Dow Jones Islamic Market Index, FTSE Global Islamic Index. Look for Halal ETFs.
• Real Estate Investment Direct or through REITs: Direct ownership of physical properties e.g., rental properties, commercial spaces or investing in Islamic Real Estate Investment Trusts REITs. These generate income from rent or property appreciation, which is permissible.
  • Direct: Purchasing a property outright or with halal financing.
  • Islamic REITs: Funds that invest in a portfolio of income-generating real estate in a Sharia-compliant manner. Search for Islamic REITs.
• Commodities Trading Spot & Physical: Engaging in the spot trading of permissible commodities like gold, silver, or other raw materials, provided the transactions involve immediate delivery and possession, avoiding deferred payments that could involve interest.
  • How it works: Buy commodities when prices are low, sell when high.
  • Key Condition: Transactions must be instant and involve physical or constructive possession.
  • Caution: Avoid futures, options, or leveraged trading as these often involve elements of gharar and riba. Focus on Physical Gold Investment or Physical Silver Investment.
• Ethical Manufacturing & Trade: Investing in businesses that produce tangible goods or provide genuine services in an ethical and halal manner. This could involve direct investment in a small business or purchasing shares in a larger company that fits the criteria.
  • Focus: Businesses that contribute to society, create real value, and avoid prohibited products or services.
  • Example: A company producing sustainable products, ethical textiles, or educational tools. Look for opportunities in Sustainable Manufacturing Investments.
• Mudarabah or Musharakah Partnerships: These are traditional Islamic finance contracts. Mudarabah is a profit-sharing partnership where one party provides capital and the other provides expertise and labor. Musharakah is a joint venture where both parties contribute capital and management, sharing profits and losses according to pre-agreed ratios.
  • How it works: Direct partnerships with entrepreneurs or through specialized Islamic financial institutions.
  • Benefits: True shared risk and reward, aligns perfectly with Islamic ethical principles.
  • Availability: More common in Islamic banking and specific private equity funds. Finding these opportunities often requires networking within ethical business communities or engaging with Islamic financial advisors.

When considering any alternative, always perform thorough due diligence to ensure the underlying business model, assets, and operational practices are genuinely Sharia-compliant and align with your personal ethical standards.

How to Handle Crowdestor.com Interactions: Cancellation & Account Management

While the ethical concerns surrounding Crowdestor.com make it unsuitable for many, understanding how to manage an existing account, including the process of cancellation, is essential for current users.

It’s important to note that since Crowdestor.com is an investment platform and not a typical subscription service, the term “cancellation” primarily refers to withdrawing funds and closing an account, rather than ending a recurring payment for a service. Luxellelondon.com Review

Also, based on their homepage, there is no mention of a “free trial,” indicating this is not a feature they offer.

Managing Your Crowdestor.com Account and Fund Withdrawal

Since Crowdestor.com operates on an investment model rather than a subscription model, “cancellation” typically refers to the process of liquidating your investments and withdrawing your funds, followed by account closure.

The website’s “How it works” section mentions that “Funds are accessible in your investor profile as soon as the loan repayment is completed.” This implies that investors might need to wait for their active loans to mature and be repaid before they can fully withdraw their invested capital and earned interest.

• Withdrawal Process:
  • Login to your Investor Profile: The primary step would be accessing your personalized dashboard on crowdestor.com/en/account.
  • Check Investment Status: Verify which of your investments are still active and which have matured and been repaid. Funds from repaid loans should be available in your Crowdestor wallet.
  • Initiate Withdrawal Request: Look for a “Withdraw” or “Cash Out” option within your wallet or account settings. You will likely need to specify the amount and the bank account to which the funds should be transferred.
  • Verification: Expect security checks, potentially including two-factor authentication or identity verification, to ensure the funds are being sent to the correct individual.
• Account Closure: After withdrawing all accessible funds, you would typically need to contact Crowdestor’s customer support to formally request account closure.
  • Contact Information: The website lists “[email protected]” and a phone number +371 2809 0606. It’s advisable to send a written request via email for documentation purposes.
  • Data Deletion: Inquire about their data retention policies and request the deletion of your personal data in accordance with GDPR or relevant privacy regulations, if applicable.
• No Free Trial: Based on the review of the Crowdestor.com homepage, there is no mention of a “free trial” offer. This implies that to use the platform, one must register, pass verification, and then invest actual capital. Therefore, there’s no “free trial” to cancel.
  • Direct Investment Model: The platform is designed for direct financial engagement from the outset.

Key Considerations for Withdrawal and Closure:

• Loan Maturity: Be prepared that funds might not be immediately available if they are tied up in ongoing loans. You may need to wait for these loans to mature and repay.
• Fees: Check their “Price List” crowdestor.com/en/page/price-list for any withdrawal fees or other charges that might apply.
• Communication: Maintain clear and documented communication with their support team throughout the process.
• Terms and Conditions: Always refer to Crowdestor.com’s official “Terms” crowdestor.com/en/page/terms and “Privacy Policy” crowdestor.com/en/page/privacy-policy for the most accurate and up-to-date procedures regarding account management and fund withdrawal.

For ethical reasons, it is highly recommended for those concerned with riba to disengage from the platform as soon as practically possible, ensuring all funds are safely returned. Etool.ai Review

Crowdestor.com Pricing: Understanding the Cost Structure

Understanding the fee structure of any investment platform is crucial.

For Crowdestor.com, while their homepage emphasizes investor earnings “up to 28% p.a.,” the actual costs are detailed in their “Price List” section, which is a key document for any prospective or current user.

This list outlines the fees that might be incurred by both investors and project owners borrowers. Since their primary income model for investors is interest, the “pricing” for investors usually relates to withdrawal fees, management fees, or secondary market transaction fees, should one exist.

• Price List Availability: The website prominently links to a “Price List” crowdestor.com/en/page/price-list in its footer. This is where comprehensive details regarding fees would be found.
• Investor Fees Likely:
  • Withdrawal Fees: It is common for P2P lending platforms to charge a small fee for withdrawing funds back to a personal bank account. This can be a flat fee or a percentage.
  • Secondary Market Fees: If Crowdestor.com offers a secondary market where investors can sell their loan parts to other investors before maturity, there would typically be a transaction fee for such sales. This allows investors to gain liquidity sooner, but usually at a cost.
  • Management Fees: Some platforms might charge a small annual management fee or a fee based on the total invested amount, though this is less common for P2P lending directly.
• Borrower Fees Project Owners: The primary fees on such platforms are often levied on the borrowers project owners who are seeking funding. These could include:
  • Origination Fees: A fee charged when a loan is set up.
  • Platform Fees: Ongoing fees for listing and managing the loan on the platform.
  • Interest Rates: While this isn’t a fee to Crowdestor from the borrower, it’s the cost of borrowing for the project and the direct source of investor returns interest. The website mentions “up to 28% p.a. or even higher,” which implies high interest rates for borrowers.

Important Note on Ethics and Pricing: Even if the fees seem minimal for investors, the underlying source of income for investors is interest. This means that while investors might pay a small fee to Crowdestor, the entire system is built on a financial structure riba that is ethically problematic. The high “average investors earnings p.a.” at 19.65% and up to 28% often means that borrowers are paying very high interest rates, which can be a further ethical concern related to potential usury or exploitation.

Investors should always: Miocai.com Review

1. Consult the latest “Price List” document directly on the Crowdestor website for the most accurate and current fee schedule.
2. Understand the impact of these fees on their net returns.
3. Reflect on the ethical implications of the interest-based model, regardless of the fees involved, for those adhering to Islamic financial principles.

For those adhering to ethical guidelines that prohibit interest, any associated pricing structure is secondary to the fundamental issue of the underlying financial model.

Crowdestor.com vs. Ethical Crowdfunding & Investment Platforms

While Crowdestor.com focuses on interest-based P2P lending, ethical alternatives emphasize shared risk, tangible assets, and Sharia-compliant practices.

• Crowdestor.com Interest-Based P2P Lending:

  • Model: Connects investors with borrowers seeking loans for various projects real estate, energy, etc.. Investors earn a fixed “interest” rate on their capital.
  • Pros: Potentially high returns advertised up to 28% p.a., diversified project types, relatively passive income once invested.
  • Cons: Reliance on Riba Interest, making it impermissible in Islamic finance. High risk of default, lack of shared profit/loss between investor and project, potential for high borrower interest rates. “Currently, no new Business loans are issued” operational pause.
  • Key Driver: Guaranteed or promised financial return through lending.

• Ethical Equity Crowdfunding Platforms e.g., specific projects on Seedrs/Crowdcube that are halal-compliant, or specialized halal platforms:

  • Model: Investors purchase equity shares in businesses. Returns come from the company’s profits dividends or appreciation in share value.
  • Pros: Sharia-compliant when screened for halal businesses, shared profit and loss with the entrepreneur, promotes real economic growth, direct ownership in productive assets.
  • Cons: Higher risk as returns are not guaranteed and depend on business success, illiquid investments harder to sell shares quickly, requires thorough due diligence on each business.
  • Key Driver: Shared ownership and participation in a real business venture.

• Halal Real Estate Investment Platforms e.g., specialized Islamic REITs or direct property platforms: Easycare.com Review

  • Model: Invests in income-generating real estate e.g., residential, commercial properties. Returns from rental income or property appreciation.
  • Pros: Sharia-compliant income from tangible assets/rent, generally stable asset class, diversified portfolio of properties.
  • Cons: High barrier to entry for direct investment, REITs might have management fees, market fluctuations can impact property values.
  • Key Driver: Rental income and property value appreciation from physical assets.

• Halal Stock Screening Services/Platforms e.g., Zoya App, Wahed Invest:

  • Model: Provides tools or managed portfolios of publicly traded stocks that adhere to Sharia compliance standards e.g., no interest-based income, no alcohol, no gambling, etc..
  • Pros: Sharia-compliant diversification, access to global markets, passive investment through managed funds.
  • Cons: Market volatility, requires ongoing screening to ensure compliance, potential for higher fees with managed accounts.
  • Key Driver: Growth and dividends from ethically screened public companies.

Key Differences:

1. Source of Return: Crowdestor.com: Interest Riba. Ethical Alternatives: Profits, Rent, Capital Appreciation from real assets/businesses.
2. Risk Sharing: Crowdestor.com: Lender bears less direct project risk but faces default risk. Ethical Alternatives: Shared profit and loss equity, Mudarabah, Musharakah.
3. Ethical Compliance: Crowdestor.com: Not Sharia-compliant due to interest. Ethical Alternatives: Designed to be Sharia-compliant.
4. Liquidity: Varies across all platforms. P2P loans can be illiquid if no secondary market exists. Equity crowdfunding is typically illiquid. Public stocks are highly liquid.

For those prioritizing ethical and Sharia-compliant investments, Crowdestor.com is fundamentally at odds with these principles.

Alternatives offer pathways to wealth generation that align with values, even if they sometimes involve different risk profiles or liquidity considerations.

Crowdestor.com Statistics: Examining the Numbers and Their Implications

Crowdestor.com prominently displays several key statistics on its homepage, aiming to showcase its scale, investor activity, and the attractive returns it claims to offer. Frantztrading.com Review

These numbers are crucial for attracting new investors, but understanding their context and implications, particularly from an ethical standpoint, is essential.

• €57.2M Funded Amount: This represents the “Combined amount of all investments” made through the platform.
  • Implication: This figure indicates a substantial volume of transactions and suggests that Crowdestor.com has successfully facilitated a considerable amount of funding for various projects. For many, this large number signals legitimacy and active engagement within the P2P lending space. However, from an ethical perspective, it also highlights the extensive scale of interest-based transactions facilitated.
• €40.8M Total Return: This is the “Combined amount of all returns that investors received.”
  • Implication: This number is meant to demonstrate the profitability for investors. It’s the aggregate of all interest payments paid out by borrowers to investors. While seemingly positive, it directly underscores the platform’s reliance on interest riba as the primary mechanism for investor earnings. This figure, therefore, reinforces the platform’s non-compliance with Islamic finance.
• 19.65% Average Investors earnings p.a.: This figure represents the “Range of investment projects with different interest rates lets you diversify your investments.”
  • Implication: This is a very high average annual return compared to traditional savings accounts or even many conventional investment vehicles. Such high returns often imply higher risk for investors or very high interest rates for borrowers. The explicit mention of “interest rates” confirms the riba-based nature of the platform. This average can be misleading as individual project returns might vary significantly, and it does not account for defaults or fees. For ethical investors, this high return is a red flag, as it is generated through a forbidden mechanism.
• 27,612 Investors: This is the “Number Savvy? Who rely on CROWDESTOR and make money.”
  • Implication: A large investor base suggests widespread adoption and a degree of trust in the platform among its users. It also implies that many individuals are comfortable with or unaware of the ethical implications of interest-based lending. This number can create a bandwagon effect, encouraging others to join without fully understanding the underlying financial structure.

Overall Implications of the Statistics:

While these statistics portray Crowdestor.com as a successful and profitable platform for its users, they simultaneously confirm its fundamental incompatibility with Islamic financial principles.

The core of their operations, as evidenced by “Total return” and “Average Investors earnings p.a.” being directly tied to “interest,” solidifies its position as a riba-based entity.

For a Muslim investor, these numbers, far from being attractive, serve as a clear warning sign to avoid the platform due to its reliance on forbidden transactions. Verniershop.com Review

The success metrics are built on a foundation that is ethically unsound according to Sharia.

FAQ

What is Crowdestor.com?

Crowdestor.com is an online P2P peer-to-peer lending and crowdfunding platform that allows individuals to invest in various business projects, such as real estate, energy, and movie production, and earn returns in the form of interest.

Is Crowdestor.com a legitimate platform?

Based on the website’s presentation, Crowdestor.com provides detailed statistics, annual reports, and various policy documents Terms, Privacy, Risks, etc., which are indicators of a formally structured platform.

However, “legitimate” in terms of ethical compliance is a different question for those adhering to Islamic finance.

How does Crowdestor.com generate returns for investors?

Crowdestor.com generates returns for investors through “earned interest” on the loans provided to various projects. Strostrke.com Review

Investors essentially lend money to businesses and receive a predetermined interest rate on their investment.

Is investing on Crowdestor.com permissible in Islam?

No, investing on Crowdestor.com is generally not permissible in Islam because its core model is based on charging and earning “interest” riba, which is strictly prohibited in Islamic finance.

What is the average annual return on Crowdestor.com?

According to their homepage, Crowdestor.com claims an “Average Investors earnings p.a.” of 19.65%, with potential earnings “up to 28% p.a. or even higher.”

Are there risks associated with investing on Crowdestor.com?

Yes, as with any investment, there are risks. The website itself includes a “Risks” section.

These typically include borrower default, liquidity risk difficulty withdrawing funds quickly, and platform risk. Webtoons.com Review

What kind of projects can I invest in on Crowdestor.com?

Crowdestor.com’s portfolio includes a range of investment projects such as energy, movie production, real estate, restaurants, and forestry.

Is Crowdestor.com currently accepting new business loans?

Based on the information on their homepage, Crowdestor.com currently states, “Currently, no new Business loans are issued,” implying a pause in new investment opportunities for borrowers.

How do I register and start investing on Crowdestor.com?

The website outlines a three-step process: 1 Register by filling out a form and passing automated verification requiring a camera and ID. 2 Invest by adding funds to your Crowdestor wallet. 3 Earn by receiving invested funds and interest.

Can I withdraw my funds from Crowdestor.com at any time?

Funds are typically accessible in your investor profile “as soon as the loan repayment is completed.” This suggests you may need to wait for your specific loan investments to mature and be repaid before withdrawal.

What are the alternatives to Crowdestor.com for ethical investing?

Ethical alternatives include Sharia-compliant equity crowdfunding, Sukuk Islamic bonds, Halal stock market investments through screened companies/ETFs, direct real estate investment or Islamic REITs, and Mudarabah/Musharakah partnerships. Auralia.ie Review

Does Crowdestor.com offer a free trial?

No, based on the Crowdestor.com homepage, there is no mention of a free trial.

The platform is designed for direct investment after registration and verification.

How do I cancel my Crowdestor.com account?

To cancel your Crowdestor.com account, you would typically need to withdraw all your accessible funds first, then contact their customer support e.g., via [email protected] to formally request account closure.

What fees does Crowdestor.com charge?

Crowdestor.com provides a “Price List” section on its website detailing any fees charged to investors e.g., withdrawal fees, secondary market fees and to project owners origination fees, platform fees.

Where is Crowdestor.com based?

Crowdestor.com lists its address as Narva mnt 5, Tallinn 10117, Estonia, indicating it is based in Estonia. Interactivebrokers.com.hk Review

What is the “Provision Fund” mentioned on Crowdestor.com?

A “Provision Fund” is typically a reserve established by P2P lending platforms to provide a buffer against potential loan defaults, aiming to enhance security for investors. The specifics would be detailed in their terms.

Does Crowdestor.com provide annual reports?

Yes, Crowdestor.com provides links to its Annual Reports from 2019 to 2023 on its homepage, which can be accessed for financial transparency.

How can I contact Crowdestor.com customer support?

You can contact Crowdestor.com customer support via email at [email protected] or by phone at +371 2809 0606.

What is “riba” in Islamic finance, and why is it relevant to Crowdestor.com?

Riba refers to interest or usury in Islamic finance, and it is strictly prohibited.

It is relevant to Crowdestor.com because the platform’s core mechanism for investor returns is explicitly “earned interest,” making it non-compliant with this fundamental Islamic principle. Rhealsuperfoods.com Review

What are the social media channels for Crowdestor.com?

Crowdestor.com maintains a presence on Facebook, Instagram, Twitter, and LinkedIn, with links provided in the footer of their website.