Topic: Nexo - "Earn 8% dividend a year with no risks" - page 2. (Read 1377 times)

This is valuable suggestion of not putting too much stake under 1 thing only. And, not to invest too much as well where the control is not in your hand. Might be you may get better 1-2% extra than investing elsewhere but always ensure it is being done in a right manner and the risk is limited.

Well I don't know what country you live in - but here in Northern Europe the banks pay about... 0% interest on a savings account. You might get lucky and find some odd bank that pays 3-4% annually - if you lock the fiat for 3-5 years. Lets not forget that fiat also has the ability to deflate just as much as a crypto currency or a stock..
So 8% with the option to put 10% of the savings into tokens that payout yearly dividends and more for holding it longer sounds pretty nice to me; it just happens Nexo is paying out their 30% of the net profit today the 15th August & soon we'll see how much of a return they hold; as we don't know how many will receive dividends etc. What I'm personally looking forward to is their promised card that you only need to hold crypto to use and spend fiat with at a fixed 5.9% annual interest rate; this will allow anyone to hold crypto and spend for a few percent of interest in the case the assumption is prices will rise higher than 5.9%, right? That's a great way for me to use Nexo as a service provider... But it's been about a year now and they still havent shipped out any cards to my knowledge; so it's kind of wishing for the best and watching how the company progresses & if they actually surpass dreaming and push out the plastic cards. I'm about 80-90k in a backlog of requests to recieve a card so...

Hopefully they start working on that card of theirs with their "fresh" influx of funds when they officially get 70% net profit "re-investment" on dividend payouts (Nexo to Distribute $6,127,981.39 in Dividends today).

By the way the ARN of cryptos with nexo is 4-5%, and 8-10% with stablecoins... You can borrow about 40-50% of your deposited btc and such cryptos, and up to nearly 80-90% of stablecoins iirc. Not too bad if you wanted to spend some of your capital but wait til your trades gained some extra profits from that same capital at just 5.9% interest.

Exactly. That’s 8% per annum which is pretty less considering the fact that bank pays the same percentage of interest to a fixed deposit (savings) account. People who just want to hold on to stable coins for a while until they wish to enter the crypto market again can opt for such scheme else it’s not that useful unless you want a crypto backed loan. Daily traders earn 5 to 6 times more amount on daily basis by short term trades. Nexo overall is a secure and trusted platform, but the interest rate should’ve been higher considering the fact that it is for per annum and not per month.

I have been using the Nexo platform for a year now. The project is highly trusted, well managed and handled by a team of professional. Everything is quite systematic. It is true that Nexo pays 8% dividend interest on all the stable coins such as USDT (Tether) etc. The stable coins help the platform to maintain higher liquidity for its customers.

The platform provides crypto-backed loans starting at 5.9% APR. It also pays 30% of its net profits as dividend to all the NEXO holders based on the quantity of NEXO coins then hold into the wallet and also has loyalty reward. I would recommend you to check the platform out.

I personally use Nexo since 6 months. I put a few 0.coins in there to try it out: it's less than 2% of my holdings. I find it a way to stack sats.
Of course I know that they hold and control my funds and I have accepted that.
So my only advice is don't put all your eggs in one basket. If you go all-in on Nexo or any other centralized entity then you know you are basically giving away your funds to a third-party.
Do accurate research on every service you intend to use.

Where did you get this from? I looked up their website and couldn't find anything like this on any announcement. And why would they be scamming if it's just about restoring Tether wallet? A lot of exchanges do that all of the time. No big deal:)

Thought to update here, seeing as I saw another thread on Nexo in Service Discussion. I haven't changed my mind about them (neutral, leaning towards wary), the model appears to work. Lend money, use overcollaterised loans, and you can always pay people back and bank on crypto doing better in the future.

As TryNinja wondered here, I'm also curious to know what happened during Black Thursday. MakerDAO and others had to liquidate a lot of lenders and are trying to make them whole again but I know some people were really pissed with defi platforms in that time.

Right so against my better judgment, and perhaps since I anyway do trust banks with my fiat (yay), I signed up with Nexo around the time I started asking in this thread and deposited all the USDT I had from cumulative small client payments. Interest racks up on the next full day, though it's 8% and not 10% as advertised. I clarified that you actually get 25% more interest (so 10% instead of 8% for fiat/stablecoins and 5% instead of 4% for crypto) IF at least 10% of your fiat value holdings are in Nexo internetcoins. So, nope.

I'll probably leave that in there, it's not so much I actually don't hold stablecoins but you never really refuse any form of payment you get, so maybe I see a healthy 8% interest after a year there. I'll be sure to update.

Oh, also applied for their card. Seems like I'm in a waiting list.

BTW, sharing a selected response from Customer Support "Daniel":

Question: Is this $100 million an overall insurance or is it per account and per instance? It doesn't seem like much to be honest, and where can we find information on how much deposits NEXO has already?

Answer: Even if we hold more than 100 Million in custody, BitGo cannot be compromised to the level of all assets been stolen with a single attack. BitGo does not keep all of their cold wallets at one place but in multiple vaults in different banks which guarantee their safety with different insurance policies.
With the level of security that BitGo has, a breach of that size is as close to impossible as it can be.
What I am saying is that even if a breach ocurred there isn't a risk of loosing funds in a amount as great as $100M due to the way BitGo manages their security.
This is why you can be sure that all of your assets will be insured at 100%.


So, it is ONLY $100M insured. They feel certain BitGo can't lose so much, but now you know, they really only do have that much insured. Probably not even 10% of total funds in deposits if we believe there are billions locked up in Defi now.

nexo is already scam. "it will take around a month to restore the USDT"

I'm all about "not your keys not your bitcoin" as I said, but I also believe in spreading my risk. I still hold a majority of my savings in a normal bank account insured and guaranteed from loss. I know promises are worth nothing but I rather think having some of it in there (not even earning interest btw) is just being practical. I am ALL for Bitcoin but I don't have the luxury of putting everything at stake on something that to me is still very much a (so far very successful) experiment. It would probably be a lot more different if I were single and alone in this world, but alas, life means I have responsibilities to many other people =)

And yeah, I imagine it's definitely not middle class on Nexo, and those on trustpilot are the plebs like me...

BitGo, for example, the ones insuring Nexo, are also reportedly the playground of the super rich. I mean, plebs like us won't even get a call back from BitGo if we asked for a quote on their vault services I guess!

The point is that the majority of the crypto "venturers" are wanna-be get rich quick mentality people. They are not as diligent as traditional traders of wall street and others which is the reason why we see so much FOMO, among other factors.

I consider these crypto lending startups to be what is having a similar outcome of mutual funds though they are completely different things. Mutual funds go to stock, bonds and gold market investments while crypto lending money goes to borrowers who will be going for the crypto market or gambling. Even then, I am more inclined to keep my coins under my control because it is crypto after all, loads of legal gray areas and points that can end up being against in based on your country's legal status of bitcoin.

Reviews are not to be trusted. Every business makes some allocation to social media buzz and they drive these fake reviews. In general a review is always biased, unbiased reviews are very very rare.

@stompix yeah that's the trouble, shilling. But a notable lack of scam cries either after 2 years makes me wonder. I opened a suppoelrt query to ask for their licensing details but no reply yet.

And it is actually 8% on bitcoin that I can see from my dashboard. Actually 8% btc and 2% in nexo shitcoin so 10%.

Curious to know if anyone actually tried. Might just take the dip with a small amount for a year.

You know people criticize Nexo with the argument that you don't hold the funds, but they themselves use a bank account where it's exactly the same thing (and even worse knowing that with a bank you can't empty your account overnight.)

Since Nexo is based on Switzerland I suppose the company is regulated there but since it's powered by Credissimo I'm not sure. And this sentence from the FAQ makes me think it's regulated by different agencies, which makes sense if they operate in different countries

I remember an article not long ago talking about the average amount invested in this platform. It showed that most people aren't the typical average Joe, not the middle class I mean. And you won't see "rich guys" posting reviews on Trustpilot

Maybe because in reality, nobody is using them?

I went to trustpilot to check the reviews, common
https://www.trustpilot.com/review/nexo.io
Great project! Much bumping spam!


Isn't it 5%? Or, "up to"?


I have a feeling we'll be asking the same question in another year 

Right, so, I hope it's okay to necropost almost but I wanted to know if anyone found out any new information about Nexo. Original thread here but this one is where the discussions are at.

I'm all about keeping control of my own Bitcoin and I'm totally fine with that. But after experiencing personally lost keys, and remembering also that my own kid lost his first Bitcoin I gave, I'm considering options for someone to hedge a modest stash.

"Defi" they say, but I remember Black Thursday and even smart contracts aren't mature enough to withstand black swan events, so what about a service that is supposedly also insured?

Tried my own basic DD on Nexo. Honestly can't find much more than already discussed (the BitGo insurance is via Lloyd's of London but yeah means nothing until they actually pay out doesn't it?).

I'm looking online and on trustpilot etc and initial findings suggest people can't find bad things about them, but neither can they find good things. Vague website section on them being regulated, seems they're separately registered in every jurisdiction, unclear on who monitors them.

I'll admit the interest (updated, it's 8% directly on Bitcoin itself, paid daily, withdrawable any time) is also attractive.

Other discussion threads already exist, their official ANN doesn't really seem to be handled by their own staff.

A year later almost, does anyone know any different?

The collateral requirement is very high, %200 of the total amount of your loan. I guess this really forces the lendee to pay. So, I would say they can really sustain it and if profits decrease i guess they can adjust it and carefully explain to nexo holders since they have been transparent.


https://nexo.io/company

parent company of nexo
https://credissimo.com/

EU has been rapidly improving in crypto infrastructures. Big companies have been working together in blockchain technologies that probably you didn't heard of.


but you can lose alot more if the trade doesn't move to your liking.

Everybody who holds one of the major cryptos or stable coin has access to their loans. Except for countries under sanctions like North Korea, Iran, etc.

I'm staking part of my coins there for interest.

Also, I already use it twice for short terms loans. I'm pleased with the experience. You get an auto assessment of how much you can borrow and the money is in your account in the next business day (SEPA, I don't know for SWIFT). And you can return it whenever you want/can.
NEXO system is made professional so I think it's sustainable.  

Just make registration and make your own due diligence

It all depends on what your profits come from. In this case, it comes from users opening a credit line and spending their fiat, the interest is set at a minimum of 8% but as I can see it can go to 15% for first-time clients.
So yeah, if you lend money with 15% you can pay somebody 8% interest.

But, as I previously said I don't know who will access these types of loans because it's quite tricky.
If you're not totally bullish on BTC and you're not sure that the coins will grow by at least the interest percentage, plus taking into consideration you have to trust them with double the money you can spend...I really don't see why would you use this.
Also, the interest is in $ as far as I can see, so if the loaner must be bullish, the lender must be a bear, cause he will think the fiat earns in BTC will be lower than 8%.

So, does someone here knows somebody who has taken a loan from them?

The question would be, is there someone who would tend up to use their service or do entrust up some funds?
8% dividend within a year is somewhat a realistic numbers to look when we do talks about interest or gains for annual basis
the only thing i do complain anytime is on using up the word "no risk" on any website that they are trying to advertise.

You could look at your money as supporting a Dice site bankroll and then the site is sharing 50% of its profits with you. It's the same with NEXO and other platforms. You giving them your money, they are loaning it at 16+% with collateral different coins, and then you are collecting profit.

IMO it's sustainable. Kind of. Until there is a demand for the loans I don't see a problem. And still much more secure than most passive investments with such return.

Attractive or not depends on what you compare it. Let's stop doing pointless discussion because surely everyone can say X is better than Y while Z is better than X, and so on.

Instead of focusing on that, we should discuss whether this 8% is really possible and sustainable or not.