Fuze Effect: A Landmine in the Way of Sustainable Development of FinTech—The Lessons from the Peer-To-Peer Risk Outbreak

Based on the data of peer-to-peer (P2P) platforms, employing ARIMAX model and analyzing risk outbreak process P2P we find that is a spreading from weak to strong along “qualification chain” platforms. This qualification chain dubbed “fuze effect” in this paper as similar fuze detonating explosives. finding implies real comes uneven quality which different dominant opinion their “credit enhancement services”. Our further study suggests effect deadweight cost caused by market competition. significance for prevention emerging industries such FinTech; is, sake sustainable development industries, government must be vigilant about effect.