Interesting that they're guaranteeing a 1-1 dollar redemption for all stablecoins. There've been cases of the issuers themselves refusing to redeem coins.
How can this third party company guarantee it for everyone?
Of course, they can't.
I'm looking at the graph of their token (of course they had an ICO)and it's all over the place
All-Time High $0.539466 USD (May 07, 2018)
All-Time Low $0.043333 USD (Sep 12, 2018)
At least they are still 7% up from the moment of the ICO, but comparing to Bitcoin it's -30% down.
Celsius is even worse, down 70% alone vs the USD.
Isn't their insurance for when they potentially go bust, and not necessarily guaranteeing the price of their little shitscoin?
Anyhow, I never understood those types of lending websites.
So I deposit 100k$ worth of Bitcoin to some foreign business, take a loan of 50k on which I pay interest two times as much as my bank offers because...
Just for the thrill of seeing if I can get back my collateral after I repay the loan or they went "bankrupt" a day before?
Which is why i wonder if this isn't some sort of a giant ponzi scheme, but apparently Nexo (
https://support.nexo.io/hc/en-us/articles/360017628093-Security-and-Insurance) is insured by Bitgo,
https://www.bitgo.com/resources/insuranceAnd so i don't expect them to hold funds of what they can confirm is a ponzi scheme. Idk.
I don't know where do you live, but I would be happy if banks in my country would pay such interest. In my country banks paying less than 1%. For example my bank paying 0.05% interest what is ridiculous...
Yep. I'm not sure where you're from that banks pay 6.5% interest, but that really takes me back to '08. Can't be real.
Interesting. I've never tried any of these lending platforms, but I'm going to check this one. 6.5% a year doesn't sounds bad, but I'm not sure that's worth considering all risks. Now matter how legit these platforms looks, it's hard to trust them with my money in long term. But maybe I'm going to try it with small investment. Does anyone knows how much minimal is needed to start?
Nexo has no minimum amount, and Celsius probably doesn't either. Everybody's welcome !
Apparently BlockFi also lets you earn 6.2% interest (min of 0.5
BTC)
https://blockfi.com/crypto-interest-account/They seem to have been in the business a bit longer and allow you to use BTC instead of whatever shitcoin nexo uses?
Looks a bit more interesting.