Just speculating, but I believe the point LC is attempting to make is that they want you to invest through their Automated Prime service or don't bother. In this way they enable you to pick the note allocation, or rate of return you are looking to achieve, while simultaneously killing off the entire "High Frequency Front-running" (so to speak) created by all the programs using the API.
With the overwhelming majority of investors, or more importantly the minority of investors with the majority of the money, using the Automated Investing Service they can foresee the upcoming Demand and try to match it up with the Supply of new notes in an orderly manner. Although this may crimp the style of the few who have been able to cherry pick notes to-date, in the long run the new approach seems "fairer" to the "Independent Observer" and is beneficial to lending Club from an operational standpoint.
Although this may upset the forum readers , it is exactly what I would if I was running LC.
With the overwhelming majority of investors, or more importantly the minority of investors with the majority of the money, using the Automated Investing Service they can foresee the upcoming Demand and try to match it up with the Supply of new notes in an orderly manner. Although this may crimp the style of the few who have been able to cherry pick notes to-date, in the long run the new approach seems "fairer" to the "Independent Observer" and is beneficial to lending Club from an operational standpoint.
Although this may upset the forum readers , it is exactly what I would if I was running LC.