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

[gentlemand]

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.

[LoyceV]

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

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.

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.

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.

[msarro]

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

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:

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.

[AdolfinWolf]

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

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.

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?) ...

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

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.)

[TORLOANS.COM]

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 .

[malevolent]

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.).

[timerland]

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.

[buwaytress]

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!

[minime0105]

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?

[BigBoy89]

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.

[josephdd1]

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]

...
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.

...
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.

[elda34b]

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.

[BigBoy89]

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.

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.

[carlfebz2]

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.

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.

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.

[stompix]

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

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?

[BigBoy89]

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

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?

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

[EastSound]

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.

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.

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.

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.

8% ? thats very low .

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

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

[buwaytress]

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?

[stompix]

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.

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!

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

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

Earn up to 10% interest on your fiat currencies and stablecoins and up to 5% on cryptocurrencies - BTC, ETH, XRP, XLM, LTC, BCH, EOS, LINK.

A year later almost, does anyone know any different?

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