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. Sometimes it's compliance, sometimes because it 'makes us look bad' on Coinmarketcap. And there's good old Tether of course.
https://www.coindesk.com/winklevoss-crypto-gemini-gusd-stablecoin-redemption
How can this third party company guarantee it for everyone?
Topic: Nexo - "Earn 8% dividend a year with no risks" - page 4. (Read 1390 times)
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?
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?
Interest payments are based on cryptos, there are no interest payments in dollars. And if you choose to receive the interests in CEL (the Celsius token) the percentage is higher. But if I'm correct borrowers can get a loan with USD as collateral too instead coins
Quote
Interest is deposited every other week
No, that's why they explained there is no compounding interest
So you can't withdraw your interest, only after how much time? but it does get deposited into your account every week? ...If it doesnt' compound why not just give it every X months, when you can instantly withdraw it and redeposit it to make it compound... ?... I don't get it.
Interest payments are based on cryptos, there are no interest payments in dollars. And if you choose to receive the interests in CEL (the Celsius token) the percentage is higher. But if I'm correct borrowers can get a loan with USD as collateral too instead coins
Quote
Interest is deposited every other week
No, that's why they explained there is no compounding interest So you can't withdraw your interest, only after how much time? but it does get deposited into your account every week? ...If it doesnt' compound why not just give it every X months, when you can instantly withdraw it and redeposit it to make it compound... ?... I don't get it. this seems flawed.
100% a scam and will fail. They will not be able to find enough people paying over 8% interest for loans that will not default to possibly keep this up for that long.
Interest payments are based on cryptos, there are no interest payments in dollars. And if you choose to receive the interests in CEL (the Celsius token) the percentage is higher. But if I'm correct borrowers can get a loan with USD as collateral too instead coins
Anybody noticed the *
"Interest rates are subject to change". What does it mean? It means you can borrow $50,000 with 8% rate but 6 months later wake up a morning and discover the rate changed to 20%
Quote
Interest is deposited every other week
No, that's why they explained there is no compounding interestAnybody noticed the *
"Interest rates are subject to change". What does it mean? It means you can borrow $50,000 with 8% rate but 6 months later wake up a morning and discover the rate changed to 20%
They are calling it a 8% but I'm only getting 6.5% of interest on my wallet. Their interest rate is less than the immediate competitor Celsius but they provide much greater flexibility on deposit and withdrawal. Not stated as such but the Celsius wallet is more like a fixed deposit than a normal deposit account.
Looking at Celsius; do they let you earn interest on your BTC, or do you need to convert your BTC to USD and then you earn interest on USD?Looks like you can earn interest on BTC, which could be much better than Nexo (since there you convert your BTC into USD before you can earn interest.)
But; i agree, all of these companies look pretty shady to me, and perhaps it's not worth the risk at all.
Do you use them? (Celsius that is.) I'm reading their FAQ and i'm kind of dumbfounded...
Quote
Our business model does not account for compounding interest – we’d rather give you the highest rates possible, always! Compounded interest is simply not a sustainable business model at this time.
What does that mean;So, why wouldn't i withdraw the interest + my deposit, then redeposit all of it? I don't get it.
I don't really completely understand these business models either, which i guess i should.
>https://celsius.network/borrow-dollars-using-crypto-as-collateral/
For 1 BTC, you can loan 5600; so 2:1, against a 9% yearly interest.
Why would anybody do this?
They are calling it a 8% but I'm only getting 6.5% of interest on my wallet. Their interest rate is less than the immediate competitor Celsius but they provide much greater flexibility on deposit and withdrawal. Not stated as such but the Celsius wallet is more like a fixed deposit than a normal deposit account.
While 8% sounds really good, it's suspiciously quite high though.
Its So thats a pretty small amount considering the risk that you are taking to put your asset into a third party lending platform and allowing them to lend it to users. It might seem lucrative as a source of passive income - let your money grow but most of the time it ends up with problems since here on the internet nobody is going to investigate properly and judge in case a theft of funds happen. These sections are grey enough to allow shady companies to take advantage.
Nonetheless, I am not saying that NEXO is a scam, but I would tread carefully with my coins. I prefer to look them with me rather than invest them. But those who want to take risk are free to do so. Let them judge the level of security measure that NEXO takes.
Offtopic: What happened to SALT Lending? I heard some rumors that SALT was liquidated into NEXO from some sources which I am not sure if they are conspiracy theories without proof or true.
You can find some testimonials of people who used them on the website (linking to Twitter) and with the money they are putting on marketing, I won't be surprised If the statistics on their website regarding the users, etc.. are accurate as I've seen them being advertised on Facebook, CoinMarketCap, Etherscan, and some other big sites. Personally though, I wouldn't suggest the service to anyone simply because of the irreversible nature of cryptocurrencies. This is no different from exchanges controlling your private keys, I don't see why would anyone want to risk their funds... there is always a possibility of inside jobs, hacks, etc.
While there might be seemingly legitimate ones like probably BlockFi and Celsius Network, I've never found these services worth the risk. Regardless of how high the percentage dividends are, handing over your Bitcoin to a centralized entity especially for long periods of time is a big no for me. Heck, just thinking of it makes me feel uneasy.
While 8% sounds really good, it's suspiciously quite high though.
While 8% sounds really good, it's suspiciously quite high though.
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.
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.
Jump to: