Nexo - "Earn 8% dividend a year with no risks" - page 3.

BigBoy89

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Quote from: josephdd1 on October 14, 2019, 11:27:39 PM

...
Yes surely it is not low. But it is low when you think that you can grow your money a few hundred times more if you invest in the right ico at the right time. ico ieo or whatever that is they are calling them now days.
Second thing is that you must consider the depreciation of Nexo's inherent value as well. The appreciation or depreciation of the original fiat money invested into it as well.
...

You can't compare a passive income with investments!
By your logic, why should we bother to invest when we can DOUBlE or even TRIPPLE our money in a matter of seconds - just roll a dice.

The key work here is pasisve.
Every IEO/ICO investment requires a lot of due diligence if you don't want to end up losing your money. And is way more risky.

Quote from: josephdd1 on October 14, 2019, 11:27:39 PM

...
Comparing all that, I can say it is not very attractive.

Compared to bank deposits, etc. is pretty lucrative. The risk is not much higher.

josephdd1

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Quote from: BigBoy89 on October 14, 2019, 01:31:14 PM

Quote from: TORLOANS.COM on October 12, 2019, 09:41:21 PM

Quote from: AdolfinWolf on June 30, 2019, 07:58:40 AM

See this article below which explains it:

https://medium.com/nexo/earn-interest-and-protect-your-stablecoins-with-nexos-1-to-1-conversion-guarantee-dbdefa8a8152

So basically, you deposit your crypto, convert it to some shitty stable coin of them, and earn 8% interest on a yearly basis. They say they use them for loans or something? aaaand they're 1:1 backed.. ?

Hmm. Seems too good to be true other than the fact that your "gains" are measured in USD/EUR ofcourse, and not BTC. For now it seems that you can't earn interest on BTC (it says "Coming Soon".)

Is anyone using them? I've heard of them in the past for getting loans, but not this compound interest scheme. Might be interesting if it's legit.

8% ? thats very low .

if you have 1 Bitcoin , you can make 8% interest per month trading on LBC .

8% is not low at all for a passive income.
There are many ways to do more, like you've said LBC is one of it. BUT trading in Localbitcoin involves activities like dealing with reversible payment methods, spending your time, etc. LBC is not a passive business at all.

NEXO was the first loan company to offer such an interest and out some Stable coins there a few months ago. For now, I'm happy with the interest and results.
Now there are others who are doing the same, like Crypto.com with similar interest rates.

Yes surely it is not low. But it is low when you think that you can grow your money a few hundred times more if you invest in the right ico at the right time. ico ieo or whatever that is they are calling them now days.
Second thing is that you must consider the depreciation of Nexo's inherent value as well. The appreciation or depreciation of the original fiat money invested into it as well.
Comparing all that, I can say it is not very attractive.

BigBoy89

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Quote from: TORLOANS.COM on October 12, 2019, 09:41:21 PM

Quote from: AdolfinWolf on June 30, 2019, 07:58:40 AM

See this article below which explains it:

https://medium.com/nexo/earn-interest-and-protect-your-stablecoins-with-nexos-1-to-1-conversion-guarantee-dbdefa8a8152

So basically, you deposit your crypto, convert it to some shitty stable coin of them, and earn 8% interest on a yearly basis. They say they use them for loans or something? aaaand they're 1:1 backed.. ?

Hmm. Seems too good to be true other than the fact that your "gains" are measured in USD/EUR ofcourse, and not BTC. For now it seems that you can't earn interest on BTC (it says "Coming Soon".)

Is anyone using them? I've heard of them in the past for getting loans, but not this compound interest scheme. Might be interesting if it's legit.

8% ? thats very low .

if you have 1 Bitcoin , you can make 8% interest per month trading on LBC .

8% is not low at all for a passive income.
There are many ways to do more, like you've said LBC is one of it. BUT trading in Localbitcoin involves activities like dealing with reversible payment methods, spending your time, etc. LBC is not a passive business at all.

NEXO was the first loan company to offer such an interest and out some Stable coins there a few months ago. For now, I'm happy with the interest and results.
Now there are others who are doing the same, like Crypto.com with similar interest rates.

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Quote from: gentlemand on July 03, 2019, 03:18:10 PM

Quote from: msarro on July 03, 2019, 02:57:03 PM

But is the risk worth it? I only heard about Nexo recently but they seem pretty legit to me.

Everything's legit until it's not. Do they have any sort of banking licence or deposit insurance? What guarantees are there their terms will remain the same?

This is a pretty much unknown institution offering an interest rate no established place can match. That says something.

Very correct. I think the first time I heard about Nexo is through their ad on coinmarketcap. I always wondered if they actually have any banking licence to offer 8% interest. And call it interest as well. Because I think you need some kind of banking licence to call what this as interest. And what about deflation? or depreciation?

buwaytress

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Yeah, I've to admit I've been tempted by these offers, keep seeing them on Etherscan or some other data site. I even know a few people trying it out.

The last time I trusted my funds to a platform was on Poloniex, but I felt that there, at least, I set the terms of expiry on my own (and since most of those guys at the time borrowing had margin calls, I'd often get back my loans sooner than expected). Made a tidy profit but was acutely aware of how much I was risking by placing it there.

8% is not fairly safe, by the way. It's extremely high yield... compared to negative interest rates in Japan and some parts of Europe!

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Quote from: TORLOANS.COM on October 12, 2019, 09:41:21 PM

Quote from: AdolfinWolf on June 30, 2019, 07:58:40 AM

See this article below which explains it:

https://medium.com/nexo/earn-interest-and-protect-your-stablecoins-with-nexos-1-to-1-conversion-guarantee-dbdefa8a8152

So basically, you deposit your crypto, convert it to some shitty stable coin of them, and earn 8% interest on a yearly basis. They say they use them for loans or something? aaaand they're 1:1 backed.. ?

Hmm. Seems too good to be true other than the fact that your "gains" are measured in USD/EUR ofcourse, and not BTC. For now it seems that you can't earn interest on BTC (it says "Coming Soon".)

Is anyone using them? I've heard of them in the past for getting loans, but not this compound interest scheme. Might be interesting if it's legit.

8% ? thats very low .

if you have 1 Bitcoin , you can make 8% interest per month trading on LBC .

Not if your thinking from a fiat POV. Comparing fiat investment options, 8 percent a year for fairly safe investment is almost double what banks are offering, and it's a pretty good deal.

I'm assuming most of their customers aren't really crypto-geniuses and are more traditional investors who want something safe - which I say with a grain of salt because this could very well end up scam.

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Quote from: TORLOANS.COM on October 12, 2019, 09:41:21 PM

8% ? thats very low .

if you have 1 Bitcoin , you can make 8% interest per month trading on LBC .

Given the risks involved in anything related to cryptocurrencies, 8% is sure low, but I wouldn't compare it with LBC, either you do in-person deals which is a time commitment, or you deal with online fiat transfers and accept all the risk that that entails (chargebacks, fraud, etc.).

TORLOANS.COM

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Quote from: AdolfinWolf on June 30, 2019, 07:58:40 AM

See this article below which explains it:

https://medium.com/nexo/earn-interest-and-protect-your-stablecoins-with-nexos-1-to-1-conversion-guarantee-dbdefa8a8152

So basically, you deposit your crypto, convert it to some shitty stable coin of them, and earn 8% interest on a yearly basis. They say they use them for loans or something? aaaand they're 1:1 backed.. ?

Hmm. Seems too good to be true other than the fact that your "gains" are measured in USD/EUR ofcourse, and not BTC. For now it seems that you can't earn interest on BTC (it says "Coming Soon".)

Is anyone using them? I've heard of them in the past for getting loans, but not this compound interest scheme. Might be interesting if it's legit.

8% ? thats very low .

if you have 1 Bitcoin , you can make 8% interest per month trading on LBC .

AdolfinWolf

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Quote from: msarro on July 04, 2019, 05:10:23 AM

Quote from: gentlemand on July 03, 2019, 03:18:10 PM

Quote from: msarro on July 03, 2019, 02:57:03 PM

But is the risk worth it? I only heard about Nexo recently but they seem pretty legit to me.

Everything's legit until it's not. Do they have any sort of banking licence or deposit insurance? What guarantees are there their terms will remain the same?

This is a pretty much unknown institution offering an interest rate no established place can match. That says something.

They can offer such interest because they also charge high interest on loans. Bear with me, I'm talking about fiat deposits. So when you deposit fiat, they use this money to give loans. And they give loans to people who lock their crypto with them. So my fiat deposit is backed by "overcollateralized loans" meaning they lock more crypto value than they loan. They also say

Quote

The collateral of each loan is subject to custodial insurance of $100 million provided by the world’s leading audited custodian BitGo and the insurance leader Lloyd’s of London.

Quote

All funds that you put up with Nexo go towards the financing of new overcollateralized loans with insured collateral. In simple terms - for every $1 we lend, we receive at least $2 in insured collateral, making your investments virtually risk-free.

That is if there actually was 1:1 loan for each dollar invested -- which we don't know. (I think?) We have no idea how much they're currently lending, and how much capital they currently have generating interest. If they have way more capital than outstanding loans, they'll either need to stop investments, or run with our money as it's unsustainable. (As i don't understand who would want to open a overcollateralized loan with them in the first place, but apparently this is a big market?) ...

Quote from: LoyceV on July 04, 2019, 04:52:15 AM

This could be a great scheme for a ponzi (I'm not saying it is a ponzi, but bear with me). Look at this table (source):

Now suppose you accept Bitoin, and pay out 8% per year interest on the dollar value it had when deposited. No matter when someone deposited a certain amount of Bitcoin, a couple years later you're in huge profit, despite paying out 8% per year!
Even without the risks, as a Bitcoin owner it's a terrible deal to exchange just holding Bitcoin for 8% interest.

Like all the cloud mining schemes, yes.
But as i've posted previously, you also have these sites which pay in BTC
https://app.blockfi.com/signup

https://www.reddit.com/r/ethtrader/comments/ay23r0/blockfi_interest_accounts_to_good_to_be_true/?utm_source=share&utm_medium=web2x

Quote

The BlockFi Interest Account (BIA) lets you put your crypto to work and earn monthly interest payments in the asset-type that you deposit with BlockFi.

BlockFi clients using the BIA earn compound interest in crypto, significantly increasing their Bitcoin, Ether, and Gemini Dollar (GUSD) balances over time.

Unless the interest rate (which currently is 6.2%) goes down when they're overcapitalized in comparison to outstanding loans of course. (Which i can only assume is what they'll do, which will probably result to a race to the bottom the second these sites get popular.)

msarro

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Quote from: gentlemand on July 03, 2019, 03:18:10 PM

Quote from: msarro on July 03, 2019, 02:57:03 PM

But is the risk worth it? I only heard about Nexo recently but they seem pretty legit to me.

Everything's legit until it's not. Do they have any sort of banking licence or deposit insurance? What guarantees are there their terms will remain the same?

This is a pretty much unknown institution offering an interest rate no established place can match. That says something.

They can offer such interest because they also charge high interest on loans. Bear with me, I'm talking about fiat deposits. So when you deposit fiat, they use this money to give loans. And they give loans to people who lock their crypto with them. So my fiat deposit is backed by "overcollateralized loans" meaning they lock more crypto value than they loan. They also say

Quote

The collateral of each loan is subject to custodial insurance of $100 million provided by the world’s leading audited custodian BitGo and the insurance leader Lloyd’s of London.

but I wouldn't count too much on that. Basically I think my fiat deposit is save as long as bitcoin doesn't crash for more than 50% because in that case, the locked bitcoins are worth less then the amount Nexo lended to loan takers.
Good explanation from their FAQ:

Quote

All funds that you put up with Nexo go towards the financing of new overcollateralized loans with insured collateral. In simple terms - for every $1 we lend, we receive at least $2 in insured collateral, making your investments virtually risk-free.

LoyceV

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I love the "no risk" part! The last time I've seen something similar was when theymos announced HoweyCoins with GUARANTEED PROFIT Cheesy

Of course nobody can really guarantee this, and if they could, they wouldn't need you because pension funds and others would line up to invest.

Quote from: TheUltraElite on June 30, 2019, 10:42:29 AM

Its 8% per year. Actually its only 6.5% per year. Thats like regular bank accounts.

Where's that? We get around 0.03% interest here.

Quote from: https://medium.com/nexo/earn-interest-and-protect-your-stablecoins-with-nexos-1-to-1-conversion-guarantee-dbdefa8a8152

We are proud to have processed more than $300,000,000 in under 7 months.
~snip~
The security of client funds is of the utmost importance to Nexo and is guaranteed for up to $100,000,000.00 by the insured custody of the assets via our partnerships with BitGo and Lloyd’s of London.

It doesn't sound like their 100 million guarantee is going to be enough.

This could be a great scheme for a ponzi (I'm not saying it is a ponzi, but bear with me). Look at this table (source):

Now suppose you accept Bitoin, and pay out 8% per year interest on the dollar value it had when deposited. No matter when someone deposited a certain amount of Bitcoin, a couple years later you're in huge profit, despite paying out 8% per year!
Even without the risks, as a Bitcoin owner it's a terrible deal to exchange just holding Bitcoin for 8% interest.

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Quote from: msarro on July 03, 2019, 02:57:03 PM

But is the risk worth it? I only heard about Nexo recently but they seem pretty legit to me.

Everything's legit until it's not. Do they have any sort of banking licence or deposit insurance? What guarantees are there their terms will remain the same?

This is a pretty much unknown institution offering an interest rate no established place can match. That says something.

msarro

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Most of this thread is about depositing crypto and earning interest
But I am more interested in their newer program Earn 8% Interest on EUR (fiat) Nexo website, Medium article
Is anyone using that? I have some fiat sitting at the bank and I'm getting almost zero interest, even if I locked it for 12 months, I would get only like 1% interest. So Nexo's 8% interest per year program looks perfect for me. It also says I can withdraw anytime which is good because I have this fiat for emergency for example if my car breaks and I need to buy a new one in short time.
But is the risk worth it? I only heard about Nexo recently but they seem pretty legit to me.

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I checked the rate on deposits. Wow, 15%-20% even with inflation it's a nice rate, but I doubt it can be a stable scheme unless the bank itself is truly making 30-40% p.a. lol.

Here, for the simplest plan (the most popular) is giving 0.75%. Ridiculous. You invest $10k you get $75. Seriously? I would rather buy some cheap gold coins and get a double rate.
The 2nd most popular is giving between ~1,5% to 2.5% (depending on how you spread the funds) but your capital can lose value, so.
Mutual funds in real estate are giving ~5%

I prefer to look at some crowdfunding platforms, I'm looking into 1 currently, focusing only in real estate, they can give 8%-10% yearly based on a 12 or 24 months contract. Yes, there is a risk too, but it's smaller than a fall in the real estate market. Here the risk is that the borrower does not repay. But their clients are small real estate companies, not individuals it's lower the risk. (And adding that they're very very selective to accept a new client...)

6% I could take the risk if I'm sure people can basically withdraw their initial investment at any time. Just a matter to spread the risks.

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Quote from: malevolent on July 02, 2019, 06:15:25 PM

There are tonnes of countries that will pay 5-10%, some will pay 15% or more:

https://www.reinisfischer.com/highest-deposit-rates-world-country-2018
https://www.financialadvisory.com/world-deposit-rates.html

But those rates as you've said are for their currency, the rates at those lending services are for $.
So it would make a lot of sense for a guy holding Turkish lira to consider it as an investment but ..taking a loan?
Not only you have to deal with the inflation but with the rates also.

Imagine somebody from Venezuela trying to pay a loan in USD, he must earn each month twice as he did previous Tongue

Which again bring the question, why would anybody take a loan from those guys?

Quote from: AdolfinWolf on July 02, 2019, 03:07:43 PM

~
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/insurance

And so i don't expect them to hold funds of what they can confirm is a ponzi scheme. Idk.

Means zero to me. Remember Madoff? Why would you trust Bitgo? Just because some big names have invested in it?
I know tens of so-called unicorns that received millions in backing from big names just to go bankrupt in under a year.

Ps.
This is not directed at you, Cheesy

, just something I've seen on this forum lately.
When some sort of banks like start-ups appear, if they deal in crypto, people are immediately starting to clap their hands, even if the business is started by GS or others, and at the same time, they boo the same banks that own that business.

It's like sticking a logo on a rag. if it says Cavalli, it's instantly not a rag, it's the new ultra elite exclusive fashion line.

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6.5% per year is way too low for the risks involved in letting someone store your coins and the likelihood of a hack, inside job or an exit-scam.

Quote from: LeGaulois on July 02, 2019, 06:18:43 AM

Do you have a bank account at least? 6% can be considered as a decent rate, considering banks offer ~1%

Quote from: AdolfinWolf on July 02, 2019, 03:07:43 PM

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.

There are tonnes of countries that will pay 5-10%, some will pay 15% or more:

https://www.reinisfischer.com/highest-deposit-rates-world-country-2018
https://www.financialadvisory.com/world-deposit-rates.html

There are several caveats, however, namely:

1. they accept deposits in exotic currencies whose inflation rates might be high;
2. which is not a problem if they pay well above the inflation rates;
3. but it might be a problem if the country is corrupt, unstable, sanctioned or in the midst of a civil war;
4. there might be capital controls
5. some of them may even pay well for USD deposits, but points 3. and 4. still apply;

IOW, caveat emptor

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Quote from: stompix on July 02, 2019, 01:35:34 PM

Quote from: gentlemand on July 02, 2019, 04:16:21 AM

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

Quote

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?

Quote from: stompix on July 02, 2019, 01:35:34 PM

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/insurance

And so i don't expect them to hold funds of what they can confirm is a ponzi scheme. Idk.

Quote from: LTU_btc on July 02, 2019, 03:01:36 PM

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.

Quote from: LTU_btc on July 02, 2019, 03:01:36 PM

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 ! Undecided

Apparently BlockFi also lets you earn 6.2% interest (min of 0.5BTC)
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.

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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?

Quote from: TheUltraElite on June 30, 2019, 10:42:29 AM

Its 8% per year. Actually its only 6.5% per year. Thats like regular bank accounts.

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...

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Quote from: gentlemand on July 02, 2019, 04:16:21 AM

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

Quote

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.

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?

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Quote from: shield132 on July 01, 2019, 01:46:42 PM

Even banks carry some risks so if anyone says it's investment without any risk, he/she is in mistake from the very first because doesn't matter how they acquire profit, loans carry a lot of risks too.
Maybe they are safe but don't know why you have to wait years for 6.5% profit (that number is stated in article instead of 8 as it's on thread's title). I think investor who waits for 6% guaranteed profit isn't good one and if you have a lot of money, better to invest in business, fund startups and etc.
How much profit (max) can you get if you live in usa and deposit in bank?

Banks don't take a risk. The entity taking the risk is the loan insurance issuer. Because you when you borrow money there is insurance for the bank in case you don't pay or become disabled, ect. You don't understand what is weekly, monthly, or P.A.? Do you have a bank account at least? 6% can be considered as a decent rate, considering banks offer ~1%

Topic: Nexo - "Earn 8% dividend a year with no risks" - page 3. (Read 1377 times)